HomeBuilding Ltd., a construction company, recognizes revenue on a percentage of completion basis. HomeBuilding Ltd. has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
HomeBuilding Ltd., a construction company, recognizes revenue on a percentage of completion basis. HomeBuilding Ltd. has only one project in progress for a total contracted price of $42,000. The project was started in Year 1 and is expected to be completed in Year 3. Data relating to the project are as follows: Year 1 Year 2 Year 3 Billings Costs incurred during the year Expected costs to complete $14,000 $12,000 $24,000 $14,000 $13,000 $15,000 $14,000 $14,000 What is gross profit (loss) reported by HomeBuilding Ltd. in Year 2? Do not round your intermediate calculations. a) ($750) O b) $1,250 c) $0 d) $2,000 HomeBuilding Ltd., a construction company, recognizes revenue on a percentage of completion basis. HomeBuilding Ltd. has only one project in progress for a total contracted price of $42,000. The project was started in Year 1 and is expected to be completed in Year 3. Data relating to the project are as follows: Year 1 Year 2 Year 3 Billings Costs incurred during the year Expected costs to complete $14,000 $12,000 $24,000 $14,000 $13,000 $15,000 $14,000 $14,000 What is gross profit (loss) reported by HomeBuilding Ltd. in Year 2? Do not round your intermediate calculations. a) ($750) O b) $1,250 c) $0 d) $2,000
Expert Answer:
Answer rating: 100% (QA)
Gross Profit reported by homebuilding ltd in Year 2 is 750 ... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
Students also viewed these economics questions
-
A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year. Management predicts this machine has a 10-year service life and a $100,000 salvage value . Compute this...
-
A small industrial printer costs $50000 and is expected to earn annual net cash inflows of $22000, $20000, $18 000 and $16 000, before it wears out sufficiently to be unreliable and must be sold for...
-
A specialized automatic machine costs $300,000 and is expected to save $111,837.50 per year while in operation. Using a 12% interest rate, what is the discounted payback period? (a) 4 (b) 5 (c) 6 (d)...
-
Bridge hands. In the game of bridge, four players are dealt hands of 13 cards each. An important statistic is the distribution of the number of cards in each suit in a hand. Which is the most likely,...
-
Use the data given in Exercise 5.47. a. Find the probability that a randomly chosen person said Yes given that the person is female. In other words, what percentage of the females said Yes? b. Find...
-
As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc., sold shelving units (recorded as Equipment) that were 10 years old for $ 800 cash. The shelves originally...
-
Calculate the volatility and the current price of oil futures implied by the call 1600 August and the call 1700 August of Figure 19.8 by using the Black-Scholes formula with \(T=.25\). OIL CRUDE OIL...
-
KenCor Pizza Emporium produces frozen pizzas for sale to grocery stores. The company has built a strong reputation for high-quality pizzas and has been profitable for a number of years. Because of...
-
A stock's rate of return in year 1 is 0.1, in year 2 is 0.3, and in year 3 is 0.2. What is the stock annual arithmetric average return? A stock's rate of return in year 1 is 0.2, in year 2 is -0.1,...
-
A local bank wants to build a bond portfolio from a set of five bonds with $1 million available for investment. The expected annual return, the worst-case annual return on each bond, and the duration...
-
How do plants get their nitrogen from the air?
-
The four strings of a bass guitar are 0.865 m long and are tuned to the notes G (98 Hz), D (73.4 Hz), A (55 Hz), and E (41.2 Hz). In one bass guitar, the G and D strings have a linear mass density of...
-
Quality control systems have been developed to remotely measure the diameter of wires using diffraction. A wire with a stated diameter of 170 mm blocks the beam of a 633 nm laser, producing a...
-
A sun-like star is barely visible to naked-eye observers on earth when it is a distance of 7.0 light years, or 6.6 10 16 m, away. The sun emits a power of 3.8 10 26 W. Using this information, at...
-
The record for the worlds loudest burp is 109.9 dB, measured at a distance of 2.5 m from the burper. Assuming that this sound was emitted as a spherical wave, what was the power emitted by the burper...
-
The G string on a guitar is 59 cm long and has a fundamental frequency of 196 Hz. A guitarist can play different notes by pushing the string against various frets, which changes the strings length....
-
Costs included in the value of inventory are Multiple Choice Purchase price less discounts less transportation-in None of the choices are correct All of the choices are correct. Purchase price less...
-
If a process has a six-sigma capability, what is the process capability index? a. 1 b. 2 c. 6 d. 12
-
The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of 500 of their long-haul tractors. Three types of deflectors, with the following characteristics,...
-
Five years ago a chemical plant invested $90,000 in a pumping station on a nearby river to provide the water required for their production process. Straight-line depreciation is employed for tax...
-
Apply the ERR method with ϵ = 12% per year to the following series of cash flows. Is there a single, unique IRR for these cash flows? What is the maximum number of IRRs suggested by...
-
An \(80 \mathrm{~kg}\) man standing on a frozen lake tosses a 0. 500 \(\mathrm{kg}\) football to his dog. (a) If the ball leaves his hands at \(15 \mathrm{~m} / \mathrm{s}\) relative to Earth, what...
-
A small block of wood of inertia \(m_{\text {block }}\) is released from rest a distance \(b\) above the ground, directly above your head. You decide to shoot it with your pellet gun, which fires a...
-
Draw before and after energy bars for the collision shown in Figure \(6.8 a\) and \(6.8 b\). Data from Figure 6.8 (a) Earth reference frame (b) Reference frame M (DEM == 0.20 m/s) = 0 FM2 ME NIZ E...
Study smarter with the SolutionInn App