A firm received orders for one ship in March 1, 2000 and completed construction in December 31, 2001.
The vessel was delivered to the ordered on February 15, 2002. Contracts, costs and collection of payments are as follows:

• Contract Payment: 200 Billion.
• Construction cost: 70 billion in 2000 and 30 billion in 2001 (total construction cost 100 billion).
• Payback: 150 billion in 2002 and 50 billion in 2003.

What revenue and expenses should be recognized in 2000,2001, and 2002 according to the criteria for the rate of construction?

Answer rating: 100% (QA)

Rate of construction method in Billion 2001 2002 60 30 2000 ... View the full answer