Suri Company is a dealer of real properties. On June 30, 2020, it sold a parcel of land with a tax basis of P1,600,000. A cash downpayment of P200,000 was made. The buyer agreed to shoulder the mortgage attached to the land amounting to P1,700,000. In addition, nine payments of P100,000 are to be made every last day of each calendar quarter after the sale. 24.How much is the gross income to be reported in 2020 using the instalment method, if applicable?

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.