1. The following data relate to a construction job started by ABC Company during 20x6: Total contract price - P100,000 Actual costs during 20x6 - 20,000 Estimated remaining costs - 40,000 Billed to customer during 20x6 - 30,000 Received from customer during 20x6 - 20,000 Any costs incurred are expected to be recoverable. Under the costs recovery method-construction accounting (zero-profit approach), what amount should ABC recognize as gross profit for 20x6?

2. Liabilities of P 90,000 existed at the beginning of a period. During the period, liabilities recorded at P 44,000 were settled for P 38,000, and new liabilities of P12,000 were incurred. A statement of realization and liquidation will show liabilities not liquidated of