Jonathan Byerly owns a construction business. His company reports income on the percentage of completion method. Jonathan completed the following contract in 2023. A client paid him $305,000,000 to build a shopping center. When the project began, estimated costs were $150,000,000. (a) Please help Jonathan determine how much income he needs to report and how much of his costs he can deduct, using the following table. Dec 31, 2022 70,000,000 Dec 31, 2023 140,000,000 NA (b) Will the IRS owe interest to Jonathan due to over-reporting of revenue in 2022? Or will Jonathan owe the IRS interest due to under-reporting of revenue in 2022? Please circle the appropriate answer. IRS owes interest to Jonathan Jonathan owes interest to the IRS

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a To determine how much income Jonathan needs to report and how much of his costs he can deduct usin... View the full answer