Automia Construction Company contracted to build an apartment complex for a price of $10,000,000. Construction began...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Automia Construction Company contracted to build an apartment complex for a price of $10,000,000. Construction began in Year 1 and was completed in Year 3. Below is a summary of the costs incurred and the estimated costs to complete by year. Year Costs Incurred Est Costs to Complete Year 1 3,000,000 6,000,000 Year 2 4,200,000 1,800,000 Year 3 1,800,000 What Gross Profit (Loss) would be recognized in Year 2, assuming that gross profit is recognized over time? Note: Please round percentages to four digits (e.g., 0.6666). Automia Construction Company contracted to build an apartment complex for a price of $10,000,000. Construction began in Year 1 and was completed in Year 3. Below is a summary of the costs incurred and the estimated costs to complete by year. Year Costs Incurred Est Costs to Complete Year 1 3,000,000 6,000,000 Year 2 4,200,000 1,800,000 Year 3 1,800,000 What Gross Profit (Loss) would be recognized in Year 2, assuming that gross profit is recognized over time? Note: Please round percentages to four digits (e.g., 0.6666).
Expert Answer:
Answer rating: 100% (QA)
The percentage of completion method is an accounting method used to recognize revenue and exp... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2018 and was completed in 2020. The following is a series of independent...
-
Embedded system is a combination of computer hardware and programmable software which is specifically designed for a particular task. It involves hardware such as microcontroller and software such as...
-
Here are the supply and demand equations for throstles, where p is the price in dollars: D (p) = 40 p S (p) = 10+p. On the axes below, draw the demand and supply curves for throstles, using blue...
-
The current items, listed in alphabetical order, are taken from the consolidated balance sheets of The Coca-Cola Company as of December 31, 2010, and PepsiCo as of December 25, 2010. (All amounts are...
-
The manager of an 80-unit apartment complex knows from experience that at a rent of $300, all the units will be full. On the average, one additional unit will remain vacant for each $20 increase in...
-
You became aware of the following control procedures for Gatehouse & Company's fixed assets: 1. All scrapped assets are agreed with published price lists before being offered for sale and are never...
-
Financial data for Bridger, Inc., for last year are as follows: The company paid dividends of $197,000 last year. The "Investment in Brier Company" on the balance sheet represents an investment in...
-
An EM wave propagates through a region with magnetic field equation, k and o values of: B 5.80 x 104 T cos (kx - wt) 2 a) What is the wavelength () of this wave? b) What is the frequency (f) of this...
-
1. If you were in Jimmies shoes, would you sell Greg an equity stake in Lees Ice Cream? Explain. If Jimmie does sell equity to Greg for $3,300, what percentage of the business should he offer? 2....
-
Compare the number of new businesses per 10,000 residents between Professional and Agriculture SA3s (both in 2011). The p-value (2 decimal places) obtained after performing a one-tailed t-test for...
-
Consider the exhibit below (Exhibit 1) Exhibit 1 Monthly excess returns Period Portfolio BTF Portfolio ETA 1 2 3 4 5 6 7 8 9 10 HASHE2539222222222 11 12 13 14 15 16 17 18 19 20 21 24 26 27 28 30...
-
Use the supply and demand graph below to answer the next two questions (1 pt. each - for both questions, assume A is the starting equilibrium point): P H 1 G B A F E S D S D 1 S3 4. If the price of...
-
You are (again) asked to evaluate a new tractor project for Deere. The engineers and marketing and accounting folks have pooled their efforts to generate the following expectations about the...
-
Jon has an income of $165. He wants to purchase berries (good z) and the price of berries is $6. The other good (good y) is a composite good, which stands for everything else that Jon might want to...
-
In the machine with homogeneous limbs, the L-length 2nd limb is under the effect of Mah moment, and limb 4 is under the effect of horizontal F force. q is the main coordinate, and r and x are the...
-
Regis One Company has outstanding 10,000 shares of $10 par common stock which had been issued at $42 per share. Paid-in Capital from Treasury Shares has a zero balance. Regis One then entered into...
-
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
-
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018 ($ in thousands): Required: Prepare a pension spreadsheet that shows the...
-
Cypress Oil Company's December 31, 2018, balance sheet listed $645,000 of notes receivable and $16,000 of interest receivable included in current assets. The following notes make up the notes...
-
A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $500,000; March 31, $600,000;...
-
Describe the relationship between the main processor and coprocessor in a system with which you are familiar or one that you discover through Web research.
-
Discuss the possibility of an n-address machine, where n > 3.
-
The instruction set of a certain processor does not have the JLE, JLT, JGE (jump less equal, less than, and greater or equal), and JGT instructions. Assume the process does not have all other...
Study smarter with the SolutionInn App