kindly answerno. 40 Wynn, Inc. has a contract to construct a large hotel for P12,000,000. The contract was signedon January 2, 20x4 and it was expected that the hotel would be complete on December 31, 20x7.At the date the contract was signed, Wynn, Inc. anficipated the costs of construcfon would totalP11,000,000. At the end of 20x5 the total cost esfimate rose to P11,870,000 and at the endof 20x6 the total cost esfimate rose to P12,000,000. Due to certain circumstances, Wynn, Inc.believes there are inherent hazards in the contract beyond the normal, recurring business risks.Wynn, Inc. expects to recover all ts costs under the contract. Under these condifions, whatamount of loss, if any, should Wynn, Inc. recognize in each of the following years?20x5, 20x620x5, 20x6a870,000, 400,000870,000, 530,0000, 400,0000,0

Loss is incurred when the amount of total cost increases the amount of revenue. That excess of cost…

Wynn, Inc. has a contract to construct a large hotel for P12,000,000. The contract was signed on January 2, 20x4 and it was expected that the hotel would be complete on December 31, 20x7. At the date the contract was signed, Wynn, Inc. an6cipated the costs of construcion would total P11,000,000. At the end of 20x5 the total cost estmate rose to P11,870,000 and at the end of 20x6 the total cost estimate rose to P12,000,000. Due to certain circumstances, Wynn, Inc. believes there are inherent hazards in the contract beyond the normal, recurring business risks. Wynn, Inc. expects to recover all is costs under the contract. Under these condfions, what amount of loss, if any, should Wynn, Inc. recognize in each of the following years? 20x5, 20x6 20x5, 20x6 870,000, 400,000 C 870,000, 530,000 0, 400,000 0,0 b.

Wynn, Inc. has a contract to construct a large hotel for P12,000,000. The contract was signed on January 2, 20x4 and it was expected that the hotel would be complete on December 31, 20x7. At the date the contract was signed, Wynn, Inc. an6cipated the costs of construcion would total P11,000,000. At the end of 20x5 the total cost estmate rose to P11,870,000 and at the end of 20x6 the total cost estimate rose to P12,000,000. Due to certain circumstances, Wynn, Inc. believes there are inherent hazards in the contract beyond the normal, recurring business risks. Wynn, Inc. expects to recover all is costs under the contract. Under these condfions, what amount of loss, if any, should Wynn, Inc. recognize in each of the following years? 20x5, 20x6 20x5, 20x6 870,000, 400,000 C 870,000, 530,000 0, 400,000 0,0 b.

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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