Manila Builders contracted to build a high-rise for P14,000,000. Construction began in 2010 and is expected to be completed in 2023. Data for 2020 and 2021 are: 2020 2021 Costs incurred to date P1,800,000 P5,200,000 Estimated costs to complete 7,200,000 4,800,000 Manila uses the percentage-of-completion method. How much gross profit should be reported for 2021?

Manila Builders contracted to build a high-rise for P14,000,000. Construction began in 2010 and is expected to be completed in 2023. Data for 2020 and 2021 are: 2020 2021 Costs incurred to date P1,800,000 P5,200,000 Estimated costs to complete 7,200,000 4,800,000 Manila uses the percentage-of-completion method. How much gross profit should be reported for 2021?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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