Sakata Contractors Ltd. has been in the construction business for many years. The following information relates to one of its construction contracts for the year ended...

Sakata Contractors Ltd. has been in the construction business for many years.
The following information relates to one of its construction contracts for the year ended 31 December 2011:


Additional information:
1. Wear and tear allowance is at the rate of 12.5%,
2. The company recognises two thirds of annual profits when they arise
3. Any contract losses are recognised in full in the year of their occurrence

Required
i) Contract profit or loss for the year ended 31 December 2011.
ii) Taxable profit or loss for the year ended 31 December 2011 assuming that there were no other contracts with a significant degree of completion.

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Wilfykil answered the question on February 25, 2019 at 05:39

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