Blackpink Co. has consistently used the cost-to-cost method for accounting for onstruction projects. In 2020, Blackpink entered into a contract to construct a building 9 million. The building was completed in 2021. Cost data related to the project are ollows: Cumulative construction costs Estimated total costs at completion As of 12/31/2020 As of 12/31/2021 P4,000,000 P7,000,000 8,000,000 How much is the realized gross profit to be recognized by Blackpink in 2021? ?
Blackpink Co. has consistently used the cost-to-cost method for accounting for onstruction projects. In 2020, Blackpink entered into a contract to construct a building 9 million. The building was completed in 2021. Cost data related to the project are ollows: Cumulative construction costs Estimated total costs at completion As of 12/31/2020 As of 12/31/2021 P4,000,000 P7,000,000 8,000,000 How much is the realized gross profit to be recognized by Blackpink in 2021? ?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Blackpink Co. has consistently used the cost-to-cost method for accounting for its
construction projects. In 2020, Blackpink entered into a contract to construct a building for
P9 million. The building was completed in 2021. Cost data related to the project are as
follows:
As of 12/31/2020 As of 12/31/2021
P4,000,000
P7,000,000
8,000,000
Cumulative construction costs
Estimated total costs at completion
How much is the realized gross profit to be recognized by Blackpink in 2021?
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