Find the amount included as current asset

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Question 1: On January 1, 2016, BUNNY, a real estate company, entered into a contract to construct a building on a piece of land it has acquired and, when construction is complete, to deliver the entire property to a customer. The following information pertains to the said contract. Total cost of land - P2M; Estimated total cost of construction - P8M; Estimated total cost of contract - P10M; Agreed purchase price - P11M. In CY 2016, total construction cost incurred amount to P2M while fair value of the land is P2.5M. The contract is considered to be a multiple contract. The amount included as current asset in the financial statements of BUNNY related to the above information under zero profit method.

Reference no: EM132594224

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