Question: Carla Vista Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and

 Carla Vista Construction is constructing an office building under contract for

Carla Vista Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1000000 each quarter. The total contract price is $18060000 and Carla Vista estimates total costs of $17950000. Carla Vista estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, Carla Vista estimates that it is 20% complete with the construction, based on costs incurred. At December 31, 2022, Carla Vista Construction estimates that it is 70% complete with the building; however, the estimate of total costs to be incurred has risen to $18150000 due to unanticipated price increases. What is the total amount of Construction Expenses that Carla Vista will recognize for the year ended December 31,2022 ? $9093000$12705000$8953000$9115000

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