Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated
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Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $900,000. The contract price was $1,300,000. Costs of the contract for 2020, the first year, totaled $675,000.
a. What was the gross profit reported by the percentage of completion method for 2020?
b. After the contract was completed at the end of 2021 at a total cost of $950,000, what was the gross profit reported by the percentage of completion method for 2021?
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South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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