On January 1, 2018, Star Construction Company entered into a contract with KC Company to build a studio house. At that time, Star Company estimated that it would take three and would cost them P7.2M to complete the project. The contract price is P9.2M. During 2019, Star Construction Company incurred P2,392,000 in construction costs but due to rising materials and labor costs, the outcome of the contract cannot be estimated reliably in 2019. However, at the end of 2020, Engr. Richard was certain that the total costs of the project will not exceed P9.2M. KC Company was billed 25% of the contract price in 2019. years 21. The profit that should be recognized in 2019 is: PO C. a. P664,444 d. P2.3M
On January 1, 2018, Star Construction Company entered into a contract with KC Company to build a studio house. At that time, Star Company estimated that it would take three and would cost them P7.2M to complete the project. The contract price is P9.2M. During 2019, Star Construction Company incurred P2,392,000 in construction costs but due to rising materials and labor costs, the outcome of the contract cannot be estimated reliably in 2019. However, at the end of 2020, Engr. Richard was certain that the total costs of the project will not exceed P9.2M. KC Company was billed 25% of the contract price in 2019. years 21. The profit that should be recognized in 2019 is: PO C. a. P664,444 d. P2.3M
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 10C
Related questions
Question
Please Answer No. 14 and 15 and No. 21
Please Provide a complete solution. Thank you
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT