Land Construction Co. has consistently used the percentage of completion method of recognizing income. During 2015,...

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Land Construction Co. has consistently used the percentage of completion method of recognizing income. During 2015, Land started work on a P7,500,000 fixed-price construction contract, which was completed in 2018. The accounting records disclosed the following data: Cumulative contract costs incurred 500,000 2,750,000 5,000,000 At December 31, 2015 At December 31, 2016 At December 31, 2017 Estimated costs at completion 5,000,000 5,500,000 6,000,000 How much income should Land have recognized on this contract for the year ended December 31, 2017? Land Construction Co. has consistently used the percentage of completion method of recognizing income. During 2015, Land started work on a P7,500,000 fixed-price construction contract, which was completed in 2018. The accounting records disclosed the following data: Cumulative contract costs incurred 500,000 2,750,000 5,000,000 At December 31, 2015 At December 31, 2016 At December 31, 2017 Estimated costs at completion 5,000,000 5,500,000 6,000,000 How much income should Land have recognized on this contract for the year ended December 31, 2017?

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Percentage of completion method It recognizes the profit with resp... View the full answer