Question: 7. On January 1, 2021, Entity A started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction

7. On January 1, 2021, Entity A started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year 12/31/2021 12/31/2022 12/31/2023 Costs incurred during the year ? P3.740.000 Realized gross profit (loss) during the year P750.000 (P250,000) (P800,000) Percentage of completion as of the end of the year 37.5% 50% ? What is the balance of Construction in Progress on December 31, 2023? a. 8.000.000 b. 7.480.000 c. 7.940.000 d. 8.280.000

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