Problem $17$: On January $1,2021,$ Entity A started the construction of a building contract can be estimated reliably. The project was completed on December $31,2020$

which resulted to penalty amounting to $P400,000.$ The entity provided the following

data concerning the direct costs related to the said project for $2018$ and $2019$:

What is the construction revenue for the year ended December $31,2018?$

a$.$ P$680,000$

c$.$ P$880,000$

b$.$ P $800,000$

d$.$ P$720,000$

What is the realized gross profit for the year ended December $31,2019?$

a$.P400,000$

c$.$ P$360,000$

b$.$ P$160,000$

d$.P200,000$

What is the balance of construction in progress on December $31,2019?$

a$.$ P$2,400,000$

c$.P2,240,000$

b$.$ P$2,040,000$

d$.$ P$1,800,000$

with a fixed contract price of P $10,000,000.$ 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:

What is the balance of Construction in Progress on December $31,2023?$

a$.$ P$8,000,000$

l$.P7,940,000$

b$.$ P$7,480,000$

d$.P,280,000$

Problem $18$: On January $1,2018,$ Liquid Company accepted a long$-$term

construction project for an initial contract price of P$2,000,000$ to be completed on

June $30,2020.$ On January $1,2019,$ the contract price was increased to P$3,000,000$

by reason of change in the design of the project. The outcome of the construction