At the beginning of 2013, the Harding Construction Company received a contract to build an office building for $10 million. Harding will construct the building according to specifications provided by the buyer, and the project is estimated to take three years to complete. According to the contract, Harding will bill the buyer in installments over the construction period according to a prearranged schedule. Information related to the contract is as follows:

	2013		2014		2015
Cost incurred during the year	$2,300,000		$3,600,000		$2,100,000
Estimated costs to complete	5,300,000		2,000,000		0
Billings during the year	1,700,000		4,000,000		4,300,000
Cash collections during the year	1,600,000		3,600,000		4,300,000

  

Calculate the following:

Gross profit recognized:		Percentage of completion Method
2013
2014
2015
Total gross profit:

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Answer rating: 100% (QA)

ANSWER The percentage of completion method is used to recognize revenue and expenses over the course ... View the full answer