Question: Dragon Construction was recently awarded a P14,000,000 contract to construct a shopping mall for Ayala Malls. Dragon Construction estimates it will take 42 months to

Dragon Construction was recently awarded a P14,000,000 contract to construct a shopping mall for Ayala Malls. Dragon Construction estimates it will take 42 months to complete the contract. During 2018, the contract price was increased by P100,000 due to expected increase in construction costs. No adjustment to revenue was agreed by the parties after that. The company uses the cost-to-cost method to estimate profits. The following information details the actual and estimated costs for the year 2017-2020: Year Actual Cost-Current year Estimated Cost to Complete 2017 P6.450.500 P6.849,500 2018 3.413.500 3.836,000 2019 2,883.600 1.416,400 2020 1,400,000 0 Required (Round off percentages to the nearest four decimal places e.g. XX0%): 1. Using the percentage of completion method, how much is the construction revenue recognized in 2017

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