started ork on a if the cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost escalations on the contracts are probable as to recovery. Additional information on the contract is shown below: 2022 P18,000,000 6,000,000 26% Cost incurred to date Estimated cost to complete Cumulative inflation rate How much is realized profit in 2022? 2021 P9,600,000 14,400,000 18%

started ork on a if the cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost escalations on the contracts are probable as to recovery. Additional information on the contract is shown below: 2022 P18,000,000 6,000,000 26% Cost incurred to date Estimated cost to complete Cumulative inflation rate How much is realized profit in 2022? 2021 P9,600,000 14,400,000 18%

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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