JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 250,000 $ 1,550,000 2024 1,600,000 500,000 2025 450,000 0 In 2025, JRE2 would report gross profit (loss) of:
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JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion.
Cost incurred | Estimated Cost to Complete | |
---|---|---|
2023 | $ 250,000 | $ 1,550,000 |
2024 | 1,600,000 | 500,000 |
2025 | 450,000 | 0 |
In 2025, JRE2 would report gross
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- JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,365,000. JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete. $ 1,660,000 621,000 0 Cost incurred. 2023 2024 2025 $ 272,000 1,710,000 560,000 In 2025, JRE2 would report gross profit (loss) of: . Multiple Choice $(177,000) $84,000, $61,000 $20.222JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,275,000. JRE 2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 260,000 $ 1,600,000 2024 1,650,000 550,000 2025 500,000 0 In 2024, JRE2 would report gross profit (loss) of: Multiple Choice $(320,000). $(235,000). $(185,000). So.Blue construction Co. has two projects for which it reported, as of December 31, 2012, the following information: Project a Project b Contract price P4, 800, 000 P860,000 2011: cost incurred 3, 400, 000 Percentage completed 75% 2012: cost incurred P1, 250, 000 P140, 000 Percentage completed 25% 15%Using the percentage of completion method of revenue recognition, gross profit on project A to be presented in 2011 would be:P 200, 000 P300, 000 P400, 000 P900, 00How much is the construction in progress on December 31,2011 from project A?200,0003,600,0003,400,0004,800,000
- Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, the following information: In thousand pesos: Project A Project B Contract Price P 4,800 860 20x4: Costs incurred P 3,400 Percent completed 75% 20x5: Costs incurred P 1,250 140 Percent Completed 25% 15% Using the percentage-of-completion (over time) method of revenue recognition, gross profit on Project A to be recognized in 20x4 would be: a. P 200,000 ] b. P 300,000UN 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?Athena Co. started work on an P8M fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 20x3 Costs incurred per year 2,850,000 3,670,000 1,600,000 Estimated costs to complete 4,275,000 1,630,000 - Requirement: Compute for the amounts recognized in profit or loss in 20x1, 20x2, 20x3, respectively.
- The carrying amount of contract costs relating to a performance obligation and recognised as an asset is $144,000. Further costs required in order to satisfy the obligation are estimated to be $36,000. The consideration receivable by the company when the obligation is satisfied is $158,400. Calculate the amount of the impairment loss (if any) which should be deducted from the contract asset and recognised as an expense. $36,000 $21,600 $50,400 $0ABC 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?P 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?
- On February 20, 2022, ABC Construction Company entered into a fixed-price contract to construct a commercial building for P9,000,000. ABC determined that the performance obligation is satisfied over time. Information relating to the contract is as follows: 2022 2023 25% 75% Percentage of campletion Estimated costs at completion P6,750,000 P7,200,000 How much is the contract costs charged to profit ar loss in 2022?Blossom Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.3 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses Gross Profit Calculate the gross profit to be recognized each year using the completed-contract method. $ 2022 $661,000 $822,000 1,519,000 705,000 2023 2022 2024 $685,900 0 2023 $ 2024contract. Information on the construction is shown below: in recognizing revenue and profit from the contract. In 20xl, Taste Construction Co. started work on a P5M fixed price Taste uses the percentage of completion method (based on costs) 20x1 20x2 1,425,000 4,040,000 3,325,000 1,010,000 20x3 Casts incurred to date 5,080,000 How much is the loss provision recognized in 20x2? a. 25,000 b. 15,000 c. 10,000 d. 5,000