Clorad Corporation contracts with a customer to construct a building. It appropriately determines that it has one performance obligation which is satisfied over time. Using the following information for Year 1, compute Clorad€™s
(a) Total estimated costs for the contract,
(b) Revenue to date,
(c) Gross profit recognized.

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Year 1 (of 4-year project) Construction costs incurred during the year Estimated costs to complete the contract Partial billings to customers Collections from customers 174,000 426,000 100,000 25,000 1,000,000 Total controct price