Question: Big Construction Co. uses the percentage-of-completion method and it began work in 20A1 on a contract for $5,500,000. The contract was completed in 20A2. Cost

Big Construction Co. uses the percentage-of-completion method and it began work in 20A1 on a contract for $5,500,000. The contract was completed in 20A2. Cost data follow: 20A1 20A2 Cost incurred during the year $1,950,000 $1,400,000 Estimated costs to complete 1,300,000 Therefore, Big Construction will recognize $800,000 of gross profit for the year ended 12/31/20A2.

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