Question: During 2018, Gates Corp. started a construction job with a total contract price of $21,000,000. The job was completed on December 15, 2019. Additional data

During 2018, Gates Corp. started a construction job with a total contract price of $21,000,000. The job was completed on December 15, 2019. Additional data are as follows: 2018 2019 Actual costs incurred during the year $8,100,000 $9,150,000 Estimated remaining costs 8,100,000 Billed to customer 7,200,000 13,800,000 Received from customer 6,000,000 14,400,000 Under the completed-contract method, what amount should Gates recognize as gross profit for 2019?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

In 2 0 2 4 , Gates Corp. started a construction job with a total contract price of $ 2 1 , 0 0 0 , 0 0 0 . The job was completed on December 1 5 , 2 0 2 5 . Additional data are as follows: Actual...

During 2007, Eaton Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred...

explain your answer. 13. During 2007, Eaton Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007...

con i PES 13. During 2007, Eaton Corp. started a construction job with a total contract price of $7.000.000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual...

Question 13 5 pts 13. During 2007, Eaton Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008...

During 2018, Gertz Corp. started a construction job with a total contract price of $12,000,000. The job was completed on November 11, 2019. Additional data are as follows: 2018 $6,100,000 2019...

During 2018, Gertz Corp. started a construction job with a total contract price of $12,000,000. The job was completed on November 11, 2019. Additional data are as follows: 2019 $4,100,000 2018 Actual...

During 2018, Jones Corp. started a construction job with a total contract price of $22,000,000. The job was completed on December 15, 2019. Additional data are as follows: 2018 2019 Actual Costs...

During 2018, Oriole Corp. started a construction job with a total contract price of $24500000. The job was completed on December 15, 2019. Additional data are as follows: 2018 2019 Actual costs...

3. During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows: 2014 2015 Actual costs...

The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next 2 years. The owner has been told that she "must" buy a surge suppressor to provide...

In the network given on the right, the bold arcs comprise a spanning tree, in which only one non- tree arc violates minimal spanning tree optimality conditions. Arc costs are given on the arcs. 6...

ACCOUNTING OFFICERS Heads of Department Held accountable overall for outputs required of the entity Allowed to delegate powers

Improving methods for teaching biology:Langley, G . J . , Moen, R . D . , K . M . , Nolan, T . W . Nolan, C . L . Norman, & L . P . Provost ( Ed . ) . ( 2 0 0 9 ) . The improvement guide: A practical...

If your organization were contemplating using a team-based approach to increase productivity and reduce cost, what training issues would the organization be likely to face? How could the organization...

Imagine that you are an HRD professional who has just finished conducting a training program for a group of supervisors at a manufacturing plant. When you ask if there are any questions, one of the...

Think about the last time you had a problem with your own performance, either on the job or in one of your classes. Using the nine-step performance analysis model from Fournies, try to identify the...