Question: For a construction firm using the completed-contract method, if costs exceed billings on some contracts by $1,000,000 and billings exceed costs by $800,000 on others,

For a construction firm using the completed-contract method, if costs exceed billings on some contracts by $1,000,000 and billings exceed costs by $800,000 on others, the contracts should ordinarily be reported as a CIP> Progress Billings = Asset a. current asset of $200,000. b. current liability of $200,000. C. current asset of $1,000,000 less a contra-current asset of $800,000. d current asset of $1,000,000 and a current liability of $800,000.

For a construction firm using the completed-contract method, if costs exceed billings on some contracts by $1,000,000 and billings exceed costs by $800,000 on others, the contracts should ordinarily be reported as a a. current asset of $200,000. CIP > progress billings = Asset b. current liability of $200,000. c. current asset of $1,000,000 less a contra-current asset of $800,000. (d. current asset of $1,000,000 and a current liability of $800,000

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