4 The performance obligation is satisfied over time. However, performance obligation but expects to recover all contract Friedland Co. cannot reasonably measure the outcome of the Cáedland Co. cannot reasonably measure the outcome of the nerformance obligation but expects to recover all contract sts incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit Revenue Cost of construction a. 0 b. 0 3,920,000 3,920,000 5,080,000 5,080,000 d. (420,000)
4 The performance obligation is satisfied over time. However, performance obligation but expects to recover all contract Friedland Co. cannot reasonably measure the outcome of the Cáedland Co. cannot reasonably measure the outcome of the nerformance obligation but expects to recover all contract sts incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit Revenue Cost of construction a. 0 b. 0 3,920,000 3,920,000 5,080,000 5,080,000 d. (420,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls provide complete solutions for both. Thank you.
Transcribed Image Text:Use the following information for the next three questions:
In 20x1, Friedland Co. entered into a contract with a customer for
the construction of a building. The contract price is a fixed fee of
P12,000,000. Information on the contract is shown below:
20x1
20x2
Costs incurred per year
Estimated costs to complete
3,920,000
5,080,000
5,880,000
1,000,000
Transcribed Image Text:4 The performance obligation is satisfied over time. However,
Friedland Co. cannot reasonably measure the outcome of the
performance obligation but expects to recover all contract
Cáedland Co. cannot reasonably measure the outcome of the
nerformance obligation but expects to recover all contract
osts incurred. How much are the gross profit, revenue and
cost of construction recognized in 20x2, respectively?
Gross profit
Revenue
Cost of construction
a. 0
b. 0
3,920,000
3,920,000
5,080,000
5,080,000
d. (420,000)
5. At contract inception, Friedland Co. assessed the contract in
accordance with the principles of PFRS 15 and concludes that
it has a single performance obligation that is satisfied at a
point in time, which is when the construction is completed
and legal title over the constructed building is transferred to
the customer. How much are the gross profit, revenue and
cost of construction recognized in 20x2, respectively?
Gross profit
Revenue Cost of construction
а. 0
b. 0
3,920,000
3,920,000
C. 0
2,400,000
2,400,000
d. (420,000)
for the
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