In 2021, ABC Company agreed to construct acommercial building at a price of P7,500,000.ABC uses the percentage of completion method.The information relating to the costs and billingsfor the contract were as follows:202120222023CostP2,100,000P4,500,000P5,887,500incurredto dateEstimated3,900,0001,500,000cost tocomplete7,500,000Progressbillings todate1,125,0003,000,000Collection900,0002,400,0007,050,000to dateHow much is the contract asset (liability) as ofDecember 31, 2022 using View 1 of the PIC?Group of answer choices(P2,625,000)(P1,500,000)P2,625,000P1,500,000

Contract asset: Contract asset is a right received the consideration for services rendered by a…

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How much is the contract asset (liability) as of December 31, 2022 using View 1 of the PIC?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

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