Robin Construction Company began a long term contract in 2021. The contract price was $800,000. The estimated

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Robin Construction Company began a long term contract in 2021. The contract price was $800,000. The estimated cost of the contract at the time it was begun was $500,000. The actual cost incurred in 2021 was $350,000. The contract was completed in 2022 and the cost incurred was $125,000. Under the percentage of completion method.

a. Robin should report $300,000 of income in 2021.

b. Robin should report $90,000 income in 2022.

c. Robin must pay interest ( under the look-back method) on the underpayment of taxes in 2021.

d. Robin should report $325,000 income in 2021.

Posted Date: Dec 14, 2021 05:50 PM

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Robin Construction Company began a long term contract in 2021. The contract price was $800,000. The estimated

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Option b is correct First we will calculate the estimated ... View the full answer

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