PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 1,600,000 6,000,000 6,400,000 1,500,000 20x2 Total costs incurred to date Estimated costs to complete How much revenue is recognized in 20x2?

PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 1,600,000 6,000,000 6,400,000 1,500,000 20x2 Total costs incurred to date Estimated costs to complete How much revenue is recognized in 20x2?

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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Question

How much revenue is recognized in 20x2?

a. 4,000,000

b. 8,000,000

c. 6,000,000

d. 0

PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract
price is P10M. Information on costs is as follows:
20x1
1,600,000 6,000,000
6,400,000 1,500,000
20x2
Total costs incurred to date
Estimated costs to complete
How much revenue is recognized in 20x2?

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