Mark comstructs residential properties fro clients and reports income by the percentage of completion method. In 2015, Mark started a P2,000,000 construction contract. Details of his 2015 and 2016 construction follow:

Mark comstructs residential properties fro clients and reports income by the percentage of completion method. In 2015, Mark started a P2,000,000 construction contract. Details of his 2015 and 2016 construction follow:

Mark constructs residential properties fro clients and reports income by the percentage of completion method. In 2015, Mark started a P2,000,000 construction contract. Details of his 2015 and 2016 construction follow:

2015. 2016
Annual construction cost. P200K. P800K
Estimated cost to finish. P800K. P200K
Extent of completion. 20%. 80%

Compite the construction income in 2015 and 2016


A. P200,000;P400,000
B. P200,000;P560,000
C. P400,000;P400,000
D. P400,000;P560,000


Answer: A. P200,000;P400,000


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