Question: Need solution Case 2: XYZ Constructions began construction work under a three year contract. The contract price was P700,000. XYZ uses the percentage of completion

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Case 2: XYZ Constructions began construction work under a three year contract. The contract price was P700,000. XYZ uses the percentage of completion method for financial accounting purposes. The financial statement presentation relating to this contract at December 31 20x0 is presented below: Balance sheet Accounts receivable - construction billings P26,250 Construction in progress P87,500 Less: Contract billings 82.250 5,250 Income statement Income (before tax) on the contract recognized in 20x0 17,500 Required: The total estimated cost is a. P140,000 b. P560,000 C. P656,250 d. P700,000

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