Question: Lytherma Construction entered into a contract to construct a floating bridge across a lake. The contract price for the bridge is 7,500,000. During 2005, costs

Lytherma Construction entered into a contract to construct a floating bridge across a lake. The contract price for the bridge is 7,500,000. During 2005, costs of 1,800,000 were incurred representing 30% of total expected costs.

Prepare the necessary entries for 2005 to recognize gross profit for the year assuming the firm uses the

1. completed-contract method

2. percentage-of-completion method

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