Condo King (CK) is building a luxury condominium for a contract price of $60,000,000. This is estimated
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Required:
a. Compute the amount of gross profit to be recognized in Year 1, Year 2, and Year 3. Show computations in tabular form in a spreadsheet.
b. Prepare all the journal entries required in Year 2.
c. Prepare the journal entry required in Year 3 to close the accounts related to the project.
d. At the end of Year 2, if the estimated cost to complete is $22 million (instead of $18 million), how much gross profit would be recognized in Year 2?
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