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show proper solution ; Topic Long-Term Construction Contracts

Problem 3. On December 31, 2022, Back To Developers Corp. entered into a conatruction contract to build a baseball park. The contract had the following provisions: - The total contract price is P16,000,000. - A mobilization fee equivalent to 6.25% of the total contract price is due 1 week from contract signing, deductible at completion of project. - Half of the contract price will be billed by the end of 2023,20% of the total contract price by the end of 2024 , and the remaining 30% balance at project completion. - Retention provision of 10% on all billings. After the first year of construction, P4,000,000 cons 1 costs were incurred, which was equivalent to 40% of the total estimated cost to complete th. . jject. After the gecond year, an additional P5,000,000 construction costs were incurred, for a total of 75% completion estimate using the cost-tocost method. 1. How much was collected from the customer in 2023 ? 2. How much is the construction in progress, net as of December 31,2024 ? 3. How much is the construction revenue for the year ended December 31,2024 ? Problem 4. I Knew You Were Rubble Inc. entered into a long-term construction contract to construct a sophisticated flood drainage system to prevent people from drowning, for an initial contract price of p20,000,000. During 2024 , the contract price increased due to the change in the project design. The following data were available: 1. How much is the cost of construction to be recognized in the company's income statement for the year ended December 31,2024 ? 2. How much is the construction revenue to be recognized in the company's income statement for the year ended December 31, 2024

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