Hollywood Construction Company recognizes revenue over time according to percentage of completion for its long-term construction...

 

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Hollywood Construction Company recognizes revenue over time according to percentage of completion for its long-term construction contracts. During 2018, Hollywood began work on a $3,000,000 fixed-fee construction contract, which was completed in 2021. The accounting records disclosed the following data at year-end: Estimated costs to complete at end of year Cumulative contract costs incurred $ 200,000 $1,800,000 1,100,000 2018 2019 1,100,000 2020 2,000,000 400,000 For the 2020 year, Hollywood should have recognized gross profit on this contract of: Hollywood Construction Company recognizes revenue over time according to percentage of completion for its long-term construction contracts. During 2018, Hollywood began work on a $3,000,000 fixed-fee construction contract, which was completed in 2021. The accounting records disclosed the following data at year-end: Estimated costs to complete at end of year Cumulative contract costs incurred $ 200,000 $1,800,000 1,100,000 2018 2019 1,100,000 2020 2,000,000 400,000 For the 2020 year, Hollywood should have recognized gross profit on this contract of:

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