Assume that AAA Construction Corp. has a contract to build a ship for $1,000 and a...

 

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Assume that AAA Construction Corp. has a contract to build a ship for $1,000 and a reliable estimate of the contract's total cost is given below Project costs incurred by AAA are as follows: AAA Project Costs Year 2011 2012 2013 2014 Total Cost Incurred 355 345 175 Rest 890 Interest Incurred 3% 3.50% 4.50 % 3.65% Determine AAA's net income from this project for each year using the percentage-of-completion and completed contract methods in accordance with U.S. GAAP through the evaluation of expense and capitalization recognition and also by U.S GAAP based recognition. Assume that AAA Construction Corp. has a contract to build a ship for $1,000 and a reliable estimate of the contract's total cost is given below Project costs incurred by AAA are as follows: AAA Project Costs Year 2011 2012 2013 2014 Total Cost Incurred 355 345 175 Rest 890 Interest Incurred 3% 3.50% 4.50 % 3.65% Determine AAA's net income from this project for each year using the percentage-of-completion and completed contract methods in accordance with U.S. GAAP through the evaluation of expense and capitalization recognition and also by U.S GAAP based recognition.

Answer rating: 100% (QA)

SOLUTION To determine AAA Construction Corps net income from the project for each year we will calculate it using both the percentageofcompletion meth... View the full answer