WCM Builders enters into a contract to build a shopping mall in 2011 for $6,000,000. Completion of
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WCM Builders enters into a contract to build a shopping mall in 2011 for $6,000,000. Completion of the mall is expected to take 2 years and cost WCM $3,600,000. Upon signing the contract, WCM receives $600,000. During 2011, WCM incurs costs of $1,200,000 and receives a $1,000,000 progress payment. WCM’s forewoman estimates that the job is 50% complete at the end of 2011. How much income mustWCM recognize in 2011 from the work done on the mall?
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WCM must use the percentageofcompleted contract method to recognize inco...View the full answer
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Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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