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cost of construction recognized in 20x2, respectively? Gross profit Cost of construction 0. 3,920,000 Revenue a. 0 b. 0 3,920,000 5,080,000 С. 0 5,080,000 d. (420,000) 0. 0.

cost of construction recognized in 20x2, respectively? Gross profit Cost of construction 0. 3,920,000 Revenue a. 0 b. 0 3,920,000 5,080,000 С. 0 5,080,000 d. (420,000) 0. 0.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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
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 costs incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit ne te Cost of construction 0. Revenue 0 a. 0 0. b. 0 3,920,000 3,920,000 с. 0 5,080,000 5,080,000 d. (420,000) 0. ontract in
Transcribed Image Text: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 costs incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit ne te Cost of construction 0. Revenue 0 a. 0 0. b. 0 3,920,000 3,920,000 с. 0 5,080,000 5,080,000 d. (420,000) 0. ontract in
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