Problem 10 – 8

(1) 2006 2007 2008

Contract Price of the construction P6,500,000 P6,500,000 P6,500,000
Less:Total Estimated Costs to complete
Cost incurred to date 2,150,000 5,250,000 6,850,000
Estimated costs to complete _3,850,000 _1,500,000 ________–
Total _6,000,000 _6,750,000 _6,850,000
Estimated gross profit (loss) 500,000 (250,000) (350,000)
Less: Gross profit (loss) in prior yrs. ________– ___520,000 _(250,000)
Gross profit (loss) this years P   520,000 P( 250,000) P( 600,000)

(2) In the year 2008 that is when the project is completed.