ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?

ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

UN
LOUIS
ABC Co. started work on an P8,000,000 fixed-price
construction contract in 20x1. Information on the contract is
as follows:
20x1
20x2
Costs incurred per year
2,850,000 3,670,000
Estimated costs to complete 4,275,000 1,630,000
How much profit (loss) is recognized in 20x2?

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