On January 1, 2020, San Juan Builders Inc. accepted a long-term construction project to build a bridge. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the contract price and construction costs for the three years of construction: Year 12/31/2020 12/31/2021 12/31/2022 Contract price as of the end of the year P10,000,000 P15,000,000 P20,000,000 Costs incurred during the year P1,000,000 P5,000,000 P8,000,000 Estimated cost to complete at the end of the year P3,000,000 P4,000,000 P2,000,000 What is San Juan Builders’ realized gross profit / (loss) for the year ended December 31, 2022?
On January 1, 2020, San Juan Builders Inc. accepted a long-term construction project to build a bridge. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the
|
Year
|
12/31/2020 |
12/31/2021 |
12/31/2022
|
|
Contract price as of the end of the year |
P10,000,000 |
P15,000,000 |
P20,000,000 |
|
Costs incurred during the year |
P1,000,000 |
P5,000,000 |
P8,000,000 |
|
Estimated cost to complete at the end of the year |
P3,000,000 |
P4,000,000 |
P2,000,000 |
What is San Juan Builders’ realized gross
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