JJ Contractors entered into a contract on October 2017 to build a warehouse for Francis Corporation. The total contract price amounting to P10,000,000 was received by JJ upon completion on June 30, 2018. Materials purchased during construction valued at P4,000,000 were paid on June 1, 2018 while a construction equipment worth P3,000,000 (net of VAT) was purchased on January 1, 2018 with the following terms; down payment - 500,000, balance payable every January 1 until fully paid starting 2019. The equipment was estimated to last for 6 years. How much is the VAT payable of JJ for June 30, 2018? a. P360,000 b. P690,000 c. P684,000 d. P0

SMDC Construction is constructing an office building under contract for Onyx Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of P1,550,000 each quarter. The total contract price is P18,600,000 and SMDC Construction estimates total costs of P17,750,000. SMDC Construction estimates that the building will take 3 years to complete, and commences construction on January 2, 2018.         SMDC Construction completes the remaining 25% of the building construction on December 31, 2020, as       scheduled. At that time the total costs of construction are P18,750,000. What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that SMDC Construction will recognize for the year ended December 31, 2020?          Revenue          Expenses A.  P18,600,000   P18,750,000 B.  P4,650,000     P  4,687,500 C.  P4,650,000     P  5,250,000 D.  P4,687,500     P  4,687,500 Group of answer choices D C B A

M5-13. Computing Revenues under Long-Term Contracts Camden Corporation agreed to build a warehouse for a client at an agreed contract price of $900,000. Ex- pected (and actual) costs for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2018. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method.