BUILDERS Construction is constructing an office building under contract. contract calls for progress billings and payments of P1,240,000 each quarter. The total contract price is P14,880,000 and the company estimates total costs of P14,200,000. The that the building will take three The company estimates years to complete and construction commences on 2022. At December 31, 2023 BUILDERS Construction estimates that it is 75% complete with their current construction project; however, the estimate of total costs to be incurred has risen to P14,400,000 due to unanticipated price increases. How is the difference, debit/(credit) between the construction in progress and the billings on construction in progress reported? A. c. 880,000 (3,380,000) D. (1,240,000) в. 1,240,000 total If the building was 30% completed by the end of 2022, what is the amount of expenses to be reported for 2023? C. VE 10,800,000 6,540,000 6,390,000 6,300,000 A. D. в.

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