Dang Construction Company consistently uses the percentage-of-completion method. On January Dang began work on a P7,800,000 construction contract. At the inception date, the estimated cost of construction was P5,850,000. The following data relate to the progress of the contract: 2020 Income recognized at December 31, 2020 Cost incurred January 1, 2020 to December 31, 2021 Estimated cost to complete at December 31, 2021 P 780,000 4,680,000 1,560,000 How much income should Dang recognize for the year ended December 31, 2021?

Dang Construction Company consistently uses the percentage-of-completion method. On January Dang began work on a P7,800,000 construction contract. At the inception date, the estimated cost of construction was P5,850,000. The following data relate to the progress of the contract: 2020 Income recognized at December 31, 2020 Cost incurred January 1, 2020 to December 31, 2021 Estimated cost to complete at December 31, 2021 P 780,000 4,680,000 1,560,000 How much income should Dang recognize for the year ended December 31, 2021?

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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