2020. As of December 31, Luccio incurred total construction costs of P600,000 and estimates additional P200,000 to bring the project to completion. Per independent appraisal, the building is at its 80% stage of completion. Compute Luccio’s 2020 construction income using the percentage completion method. P40,000 P160,000 P200,000 P400,000
2020. As of December 31, Luccio incurred total construction costs of P600,000 and estimates additional P200,000 to bring the project to completion. Per independent appraisal, the building is at its 80% stage of completion. Compute Luccio’s 2020 construction income using the percentage completion method. P40,000 P160,000 P200,000 P400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Luccio accepted a P1,000,000 construction contract in early 2020. As of December 31, Luccio incurred total construction costs of P600,000 and estimates additional P200,000 to bring the project to completion. Per independent appraisal, the building is at its 80% stage of completion.
Compute Luccio’s 2020 construction income using the percentage completion method.
P40,000
P160,000
P200,000
P400,000
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