JPIA Company began operations on January 2, 2021. During the year, the company entered into a contract with PUP Company to construct a manufacturing facility. At that time JPIA estimated that it would take five years to complete the facility at a cost of P4,812,500. The total contract price for the construction of the facility is P5,468,750. During the year, the company incurred P962,500 in construction costs related to the construction project. At year end, the total estimated cost to complete the contract is P4,375,000. PUP was billed and paid 30% of the contract price subject to a 10% retention. Using the percentage of completion method, how much is Contract Liability to be presented in the Statement of Financial Position for the year just ended?
JPIA Company began operations on January 2, 2021. During the year, the company entered into a contract with PUP Company to construct a manufacturing facility. At that time JPIA estimated that it would take five years to complete the facility at a cost of P4,812,500. The total contract price for the construction of the facility is P5,468,750. During the year, the company incurred P962,500 in construction costs related to the construction project. At year end, the total estimated cost to complete the contract is P4,375,000. PUP was billed and paid 30% of the contract price subject to a 10% retention. Using the percentage of completion method, how much is Contract Liability to be presented in the
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