Manila Builders contracted to build a high-rise for P14,000,000. Construction began in 2010 and is expected to be completed in 2023. Data for 2020 and 2021 are: 2020 2021 Costs incurred to date P1,800,000 P5,200,000 Estimated costs to complete 7,200,000 4,800,000 Manila uses the percentage-of-completion method. How much gross profit should be reported for 2021?
Manila Builders contracted to build a high-rise for P14,000,000. Construction began in 2010 and is expected to be completed in 2023. Data for 2020 and 2021 are: 2020 2021 Costs incurred to date P1,800,000 P5,200,000 Estimated costs to complete 7,200,000 4,800,000 Manila uses the percentage-of-completion method. How much gross profit should be reported for 2021?
Chapter1: Financial Statements And Business Decisions
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How much gross profit should be reported for 2021?
Transcribed Image Text:Manila Builders contracted to build a high-rise for P14,000,000. Construction began in 2010 and
is expected to be completed in 2023. Data for 2020 and 2021 are:
2020
2021
Costs incurred to date
P1,800,000 P5,200,000
Estimated costs to complete
7,200,000
4,800,000
Manila uses the percentage-of-completion method. How much gross profit should be reported
for 2021?
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