20. On Jan. 1, 2019, the Luzviminda Company, a private entity has agreed to construct and operate an expressway on behalf of the national government. The construction cost is P900,000,000 (from the stand-
20. On Jan. 1, 2019, the Luzviminda Company, a private entity has agreed to construct and operate an expressway on behalf of the national government. The construction cost is P900,000,000 (from the stand-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
HELP ME WITH SUPPORTING COMPUTATION THANK YOU
HOW MUCH IS THE NET INCOME IN 2020?
![20. On Jan. 1, 2019, the Luzviminda Company, a private entity has agreed to construct and operate an
expressway on behalf of the national government. The construction cost is P900,000,000 (from the stand-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdecfdf9f-2497-4a9e-8299-34341e25f93e%2F46865255-e03a-4334-9c1e-f455c5a4e92f%2Fmxriqp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:20. On Jan. 1, 2019, the Luzviminda Company, a private entity has agreed to construct and operate an
expressway on behalf of the national government. The construction cost is P900,000,000 (from the stand-
![alone selling price of the construction services rendered.) The construction is expected to be completed
on Dec. 31, 2019.
The operating term of the expressway is ten(10) years and will commence at the beginning of
2020. It is estimated that annual cash operating costs would be P162,000,000. The entity will generate
revenue from tolls charged to users of the expressway. It is estimated that the annual revenue would be
P270,000,000,
How much is the net income in 2020?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdecfdf9f-2497-4a9e-8299-34341e25f93e%2F46865255-e03a-4334-9c1e-f455c5a4e92f%2Fonggy7m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:alone selling price of the construction services rendered.) The construction is expected to be completed
on Dec. 31, 2019.
The operating term of the expressway is ten(10) years and will commence at the beginning of
2020. It is estimated that annual cash operating costs would be P162,000,000. The entity will generate
revenue from tolls charged to users of the expressway. It is estimated that the annual revenue would be
P270,000,000,
How much is the net income in 2020?
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