Using zero-profit method (cost recovery), compute the following:

How much is the realized profit in 2015 and 2016?
How much is the Revenue earned in 2016?
How much is the CIP net in 2016?

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ETON CONSTRUCTION COMPANY is recognizing income from long term construction contract. In 2013, ETON entered into a fixed price contract to construct a fly-over connecting to Luzon and Mindanao for $65,000,000. Estimated costs and contract costs up to 2016 were as follows: YEAR cost incurred estimated cost to complete progress billings 2013 $15,000,000 2014 6,000,000 2015 25,000,000 2016 19,000,000 $15,000,000 6,700,000 24,500,000 16,800,000 $60,000,000 62,000,000 66,000,000 63,000,000 ETON CONSTRUCTION COMPANY is recognizing income from long term construction contract. In 2013, ETON entered into a fixed price contract to construct a fly-over connecting to Luzon and Mindanao for $65,000,000. Estimated costs and contract costs up to 2016 were as follows: YEAR cost incurred estimated cost to complete progress billings 2013 $15,000,000 2014 6,000,000 2015 25,000,000 2016 19,000,000 $15,000,000 6,700,000 24,500,000 16,800,000 $60,000,000 62,000,000 66,000,000 63,000,000

Answer rating: 100% (QA)

Calculate the recognized revenue for each year 2013 Revenue Recognized Billings 15000000 2014 Cost Incurred in 2014 6700000 Total Cost Incurred up to ... View the full answer