Homework answers / question archive / Under the "cost-to-cost" method, the percentage of completion may be computed as Total costs incurred to date divided by the Estimated total costs to complete total costs incurred to date multiplied by the Estimated total costs to complete Total costs incurred to date multiplied by the Estimated total costs to complete Total costs incurred to date divided by the sum of Total costs incurred to date and Estimated costs to complete   On Jan, 1,20x1

Under the "cost-to-cost" method, the percentage of completion may be computed as Total costs incurred to date divided by the Estimated total costs to complete total costs incurred to date multiplied by the Estimated total costs to complete Total costs incurred to date multiplied by the Estimated total costs to complete Total costs incurred to date divided by the sum of Total costs incurred to date and Estimated costs to complete   On Jan, 1,20x1

Accounting

Share With

1. Under the "cost-to-cost" method, the percentage of completion may be computed as
   1. Total costs incurred to date divided by the Estimated total costs to complete
   2. total costs incurred to date multiplied by the Estimated total costs to complete
   3. Total costs incurred to date multiplied by the Estimated total costs to complete
   4. Total costs incurred to date divided by the sum of Total costs incurred to date and Estimated costs to complete

2. On Jan, 1,20x1. Knock Co. enters into a contract with a customer to transfer a license for a fixed fee of P100,000 payable as follows. 20% at contract inception and balance due in 4 equal annual installments starting Dec. 31, 20x1. The discount rate is 12%. At contract inception, Knock determines that there is significant uncertainty in the collectability of the note, and that the nature the promise to grant the license is to provide the customer with the right to use" Knock's intellectual property as it exists at grant date. Knock transfers the license to the customer, and incurs direct contract costs of P20,0000, on Jan. 1, 20x1. How much contract revenue are recognized in 20x1?
   1. 0
   2. 20,187
   3. 20,000
   4. 80,747