Question: Newberg Construction Corporation contracted to construct a building for $400,000. Construction began in 2007 and was completed in 2008. Data relating to the contract are

Newberg Construction Corporation contracted to construct a building for $400,000. Construction began in 2007 and was completed in 2008. Data relating to the contract are as follows:

Required
Newberg uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2007 and 2008, respectively, how much income should Newbergreport?

Year Ended December 31, Costs incurred Estimated costs to complete 2007 $200,000 100,000 2008 $110,000

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