Please explain in detail 14.Calypso Inc. employs the cost-to-cost method in determining the percentage of completion for revenue recognition.The company's records show the following information on a recently completed project for a contract price ofP11,000,000.201520162017Costs incurredGross profit (loss)P1,980,000P5,610,000P?220,000770,000(110,000)Compute for the (1) total estimated construction costs at December 31, 2016, and (2) the actual costincurred duringthe year 2017.Mark only one oval.(1) P3,740,000; (2) P2,530,000(1) P3,740,000; (2) P4,510,000(1) P9,730,769; (2) P4,510,000(1) P9,730,769; (2) P2,530,000

Using percentage method, the revenue is recognised on the basis of percentage of the work completed…

14. Calypso Inc. employs the cost-to-cost method in determining the percentage of completion for revenue recognition. The company's records show the following information on a recently completed project for a contract price of P11,000,000. Costs incurred Gross profit (loss) 2015 P1,980,000 220,000 2016 P5,610,000 770,000 2017 P? (110,000) Compute for the (1) total estimated construction costs at December 31, 2016, and (2) the actual costincurred during the year 2017. Mark only one oval. (1) P3,740,000; (2) P2,530,000 (1) P3,740,000; (2) P4,510,000 (1) P9,730,769; (2) P4,510,000 (1) P9,730,769; (2) P2,530,000 0000