What the profit recognized from the contract should be

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Reference no: EM132945616

State Construction Company recognizes revenue using the percentage of completion method. During 2019, a single long term contract was begun. Information on the project is given below.

2019

Accounts Receivable from client 1,000,000
Construction Costs 1,050,000
Construction in Progress 1,220,000
Partial Billings on contract 1,000,000

2020

Accounts Receivable from client 3,000,000
Construction Costs 1,920,000
Construction in Progress 3,640,000
Partial Billings on contract 4,200,000

Problem 1: The profit recognized from the contract in 2019 should be

a. P500,000
b. P1,280,000
c. P1,008,000
d. P2,280,000

Reference no: EM132945616

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