Monty Construction Company has entered into a contract beginning January 1, 2020, to build a parking...

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Monty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $897,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $275,080 $412,620 $607,000 Estimated costs to complete 322,920 185,380 -0- Progress billings to date 272,000 545,000 897,000 Cash collected to date 242,000 495,000 897,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross profit recognized in 2022 $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer %24 %24 %24 %24 %24 Monty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $897,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $275,080 $412,620 $607,000 Estimated costs to complete 322,920 185,380 -0- Progress billings to date 272,000 545,000 897,000 Cash collected to date 242,000 495,000 897,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross profit recognized in 2022 $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer %24 %24 %24 %24 %24

Answer rating: 100% (QA)

Contract Price 897000 Working Note 1 Contract cost 598000 2020 2021 2... View the full answer