Sandlewood Construction Incorporated recognizes revenue over time according to percentage of completion for its long-term construction contracts.
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Question:
Sandlewood Construction Incorporated recognizes revenue over time according to percentage of completion for its long-term construction contracts. In 2024, Sandlewood began work on a $10,000,000 construction contract, which was completed in 2025. The accounting records disclosed the following data at the end of 2024:
Costs incurred $ 5,400,000
Estimated cost to complete 3,600,000
Progress billings 4,100,000
Cash collections 3,200,000
How much gross profit should Sandlewood have recognized in 2024?
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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