Question: LMN entered into a long-term construction contract to construct an underpass for an initial contract price of P75,000,000. During 2023, the contract price decreased due

LMN entered into a long-term construction contract to construct an underpass for an initial contract price of P75,000,000. During 2023, the contract price decreased due to the change in the project design. The following data were available: 2023 2024 Cost incurred P18,000,000 P30,000,000 Realized gross profit/(loss) 30% (12,000,000) 60% P4,000,000 80% Percentage of completion as of year end 2022 1. Compute the cost of construction presented in the Statement of Comprehensive Income of LMN for the year ended December 31, 2024 A. 12,800,000 B. 18,500,000 C. 10,500,000 D. 15,700,000 2. Compute the Construction in Progress balance in 2024 A. 0 B. 57,300,000 C. 58,000,000 D. 64,800,000

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