1. During the year, Agency XYZ entered into a contract with a third party for the construction of a new building.The contract price was P14,500,000.00. The new building was not finished on the agreed deadline due to lackof equipment needed for the construction. The contractor was charged for liquidation damages worth P500,000.The agency director also wanted its old building to be connected to the new building for the convenience of itsemployees and also of the public. Letters were sent out to interested third parties for this project and a datewas set up for the bidding. Estimated cost of the project is P5 million.How much is the cost of the building?

Solution : Calculation of cost of the building Total initial contract price 14,500,000…

Answered: During the year, Agency XYZ entered…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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