Henry accepted a P1,000,000 construction contract in early 2016. As of December 31, Henry incurred total construction costs of P600,000 and estimates additional P200,000 to bring the project to completion. Per independent appraisal, the building is at its 80% stage of completion. Compute Henry's 2016 construction income using the percentage of completion method

Henry accepted a P1,000,000 construction contract in early 2016. As of December 31, Henry incurred total construction costs of P600,000 and estimates additional P200,000 to bring the project to completion. Per independent appraisal, the building is at its 80% stage of completion. Compute Henry's 2016 construction income using the percentage of completion method

Henry accepted a P1,000,000 construction contract in early 2016. As of December 31, Henry incurred total construction costs of P600,000 and estimates additional P200,000 to bring the project to completion. Per independent appraisal, the building is at its 80% stage of completion. Compute Henry's 2016 construction income using the percentage of completion method




A. P40,000
B. P160,000
C. P200,000
D. P400.000


Answer: C. P200,000


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