During 2020, ABC Construction Co. began a construction job with a contract price of $2.8 million....

 

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During 2020, ABC Construction Co. began a construction job with a contract price of $2.8 million. The job was completed in 2022. The data below is available: 2020 $1,000,000 S1,100,000 S1,050,000 $900,000 2021 $1,600,000 $400,000 $2,150,000 Costs Incurred to Date Estimated Costs to Complete 2022 S1.800,000 Billings to Date Collections to Date S2,800,000 $2,100,000 $2,800,000 ABC Construction Co. follows IFRS and therefore, uses the percentage-of-completion method to account for its long-term contracts. Required: Round all currency to 2 decimal places. Round all percentages to 7 decimal places. a) Determine the percentage complete for the end of 2020, 2021, and 2022. b) Calculate the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used. During 2020, ABC Construction Co. began a construction job with a contract price of $2.8 million. The job was completed in 2022. The data below is available: 2020 $1,000,000 S1,100,000 S1,050,000 $900,000 2021 $1,600,000 $400,000 $2,150,000 Costs Incurred to Date Estimated Costs to Complete 2022 S1.800,000 Billings to Date Collections to Date S2,800,000 $2,100,000 $2,800,000 ABC Construction Co. follows IFRS and therefore, uses the percentage-of-completion method to account for its long-term contracts. Required: Round all currency to 2 decimal places. Round all percentages to 7 decimal places. a) Determine the percentage complete for the end of 2020, 2021, and 2022. b) Calculate the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.

Answer rating: 100% (QA)

Answer Explanation a 2020 2021 2022 Complete 476190476 8... View the full answer