On January 1, 2021, MARCOS Company entered into a contract for the construction of a building at an original price of P2,000,000 to be completed on June 30, 2023 subject to penalty of P500,000 on the it becomes virtually certain that construction will not be completed on the date agreed upon. On January 1, 2022, the contract price increased by P2,500,000 due to the change in the design of the building requested by the customer. year 12/31/2021 12/31/2022 12/31/2023 Cumulative costs incurred as of the end of the year Estimated remaining cost to complete at the end of the year 600,000 900,000 3,075,000 1,025,000 3,780,000 420,000 What is the realized gross profit (loss) to be recognized by MARCOS Company for the year ended December 31, 2023 if the outcome of construction can be estimated reliably?

On January 1, 2021, MARCOS Company entered into a contract for the construction of a building at an original price of P2,000,000 to be completed on June 30, 2023 subject to penalty of P500,000 on the it becomes virtually certain that construction will not be completed on the date agreed upon. On January 1, 2022, the contract price increased by P2,500,000 due to the change in the design of the building requested by the customer. year 12/31/2021 12/31/2022 12/31/2023 Cumulative costs incurred as of the end of the year Estimated remaining cost to complete at the end of the year 600,000 900,000 3,075,000 1,025,000 3,780,000 420,000 What is the realized gross profit (loss) to be recognized by MARCOS Company for the year ended December 31, 2023 if the outcome of construction can be estimated reliably?

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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