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In 20x1, Silverchair Co., a construction company, enters into a contract with a customer for the construction of a building. The contract states a fixed fee of P8,700,000. Silverchair's performance obligation in the contract is satisfied over time. Silverchair uses the 'cost-to-cost' method in measuring its progress in the contract.
Information on the contract follows:
20x1 20x2
Estimated total costs at completion 6,525,000 6,960,000
Percentage of completion 15% 65%
Problem 1: How much is the profit recognized in 20x2?
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