How much is realized profit in 2022? Integrity Corporation started work on a construction contract in 2021. The contract price is P40M. However, if thecumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost escalationson the contracts are probable as to recovery. Additional information on the contract is shown below:2022P18,000,0006,000,00026%Cost incurred to dateEstimated cost to completeCumulative inflation rateHow much is realized profit in 2022?2021P9,600,00014,400,00018%

For calculating the realized profit, first we have to calculate percentage completion in 2022 and…

Integrity Corporation started work on a construction contract in 2021. The contract price is P40M. However cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost esca on the contracts are probable as to recovery. Additional information on the contract is shown below: 2022 P18,000,000 6,000,000 26% Cost incurred to date Estimated cost to complete Cumulative inflation rate 2021 P9,600,000 14,400,000 18%

Integrity Corporation started work on a construction contract in 2021. The contract price is P40M. However cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost esca on the contracts are probable as to recovery. Additional information on the contract is shown below: 2022 P18,000,000 6,000,000 26% Cost incurred to date Estimated cost to complete Cumulative inflation rate 2021 P9,600,000 14,400,000 18%

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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