In 2019, K Building Inc began work for a four-year construction project. The contract price is 300,000,000.
Question:
In 2019, K Building Inc began work for a four-year construction project. The contract price is 300,000,000. K uses the percentage of completion method of accounting. At the end of 2020, the following financial statement information indicates the result to date: Income statement: Gross profit (before taxes) recognized in 201922M Balance sheet: Accounts receivable from construction billings10M Construction in progress66M Less: Billings on construction 75M Net billings in excess of construction in progress 9M.
Compute the following:
a. Cash collected by K during 2019.
b. The actual cost incurred by K during 2019
c. On December 31, 2019, the estimated remaining cost to complete.
d. The percentage of completion during 2019.
South Western Federal Taxation Individual Income Taxes 2018
ISBN: 9781337385893
41st edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen