Question: Amy Van Dyken Construction Company uses the percentage-of-completion method of accounting. In 2008, Van Dyken began work under contract #E2-D2, which provided for a contract

Amy Van Dyken Construction Company uses the percentage-of-completion method of accounting. In 2008, Van Dyken began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow:

Instructions
(a) What portion of the total contract price would be recognized as revenue in 2008? In 2009?
(b) Assuming the same facts as those above except that Van Dyken uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in2009?

2008 2009 Costs incurred to date Estimated costs to compiete, as of December 31 Billings during the year S 480,000 1,120,000 420,000 $1,425,000 1,680,000

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