On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31, 200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs 2022 2023 2024 Billings 10,500,000 12,500,000 14,440,000 15,756,000 incurred 5,460,000 9,984,000 to Complete 20,540,000 13,156,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 20247 A. 1,164,000 В. . 1,724,000 D. 1,824,000 1,466, 400
On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31, 200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs 2022 2023 2024 Billings 10,500,000 12,500,000 14,440,000 15,756,000 incurred 5,460,000 9,984,000 to Complete 20,540,000 13,156,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 20247 A. 1,164,000 В. . 1,724,000 D. 1,824,000 1,466, 400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which
is estimated to
revenue over time. Data on this project for 2022-2024 follow:
cost P31,200,000.
The company recognizes construction
Contract
Costs
Est'd Costs
Billings
10,500,000
12, 500,000
14,440,000
to Complete
20,540,000
13,156,000
incurred
2022
2023
2024
5,460,000
9,984,000
15,756,000
The contract contains a penalty clause that penalizes the company a reduction
of P70,000 from the contract price for every week of delay.
contract was delayed for 8 weeks
In 2024, the
What is the gross profit for 2024?
A. 1,164,000
C.
1,724,000
в.
1,466,400
D. 1,824,000
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