5. Mikell Builders contracted to build a high-rise for $12,000,000. Construction began in 2019 and is...
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5. Mikell Builders contracted to build a high-rise for $12,000,000. Construction began in 2019 and is expected to be completed in 2021. Data for 2019 and 2020 are: 2019 2020 Costs incurred to date 4,300,000 7,000,000 Estimated costs to complete 6,000,000 4,000,000 Mikell uses the percentage-of-completion method. Required: a. Compute the amount of gross profit (loss) that Mikell must report for 2019. b. Compute the amount of gross profit (loss) that Mikell must report for 2020. Assume instead that Mikell uses the completed contract method. Compute the amount of gross profit (loss) that Mikell must report for each the two years, 2019 and c. 2020. 5. Mikell Builders contracted to build a high-rise for $12,000,000. Construction began in 2019 and is expected to be completed in 2021. Data for 2019 and 2020 are: 2019 2020 Costs incurred to date 4,300,000 7,000,000 Estimated costs to complete 6,000,000 4,000,000 Mikell uses the percentage-of-completion method. Required: a. Compute the amount of gross profit (loss) that Mikell must report for 2019. b. Compute the amount of gross profit (loss) that Mikell must report for 2020. Assume instead that Mikell uses the completed contract method. Compute the amount of gross profit (loss) that Mikell must report for each the two years, 2019 and c. 2020.
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a Calculate Gross profit 2020 Percentage completion 45000006000... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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