In 2011, Long Construction Corporation began construction work under a three-year contract. The contract price is $1,600,000. Long uses the percentage-of-completion method for financial reporting purposes. The financial statement presentation relating to this contract at December 31, 2011, is as follows:

Required:
1. What was the cost of construction actually incurred in 2011?
2. How much cash was collected in 2011 on this contract?
3. What was the estimated cost to complete as of the end of 2011?
4. What was the estimated percentage of completion used to calculate income in2011?

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Balance Sheet Accounts receivable (from construction progress billings Construction in progress Less: Billings on construction contract Cost of uncompleted contracts in excess of billings 30000 $100,00 (94,000 6,000 Income Statement Income (before tax) on the contract recognized in 2011 20000