Pina Construction Corp. has consistently used the percentage$-$of$-$completion method. In $2023,$ Pina's started work on a $$10741000$ construction contract that was completed in $2024.$ The following information was taken from Pina's $2023$ accounting records:

Billings to date $$3344000$

Costs incurred $3190000$

Collections to date $2173000$

Estimated costs to complete $6342400$

Under the earnings approach, what amount of gross profit should Pina recognize in $2023$ on this contract?

 

Answer rating: 100% (QA)

To calculate the gross profit recognized in 2023 using the earnings approach we need to determine th... View the full answer