PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 1,600,000 6,000,000 6,400,000 1,500,000 20x2 Total costs incurred to date Estimated costs to complete How much revenue is recognized in 20x2?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How much revenue is recognized in 20x2?

a. 4,000,000

b. 8,000,000

c. 6,000,000

d. 0

PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract
price is P10M. Information on costs is as follows:
20x1
1,600,000 6,000,000
6,400,000 1,500,000
20x2
Total costs incurred to date
Estimated costs to complete
How much revenue is recognized in 20x2?
Transcribed Image Text:PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 1,600,000 6,000,000 6,400,000 1,500,000 20x2 Total costs incurred to date Estimated costs to complete How much revenue is recognized in 20x2?
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