Question
1- Al Tawaan Plastics entered into a contract to install a pipeline for a fixed price of OR2,200,000. Al Tawaan uses the cost recovery method
1-
Al Tawaan Plastics entered into a contract to install a pipeline for a fixed price of OR2,200,000. Al Tawaan uses the cost recovery method of revenue recognition.
2015 2016 2017
Cost incurred 250,000 1,600,000 450,000
Estimated cost to complete 1,550,000 500,000 0
In 2015, Al Tawaan would report (rounded to the nearest thousand) gross profit (loss) of:
Select one:
a. OR 73,000
b. OR 0
c. OR 56,000
d. OR (100,000)
2-
Al Tawaan Plastics entered into a contract to install a pipeline for a fixed price of OR2,200,000. Al Tawaan uses the cost recovery method of revenue recognition.
2015 2016 2017
Cost incurred 250,000 1,600,000 450,000
Estimated cost to complete 1,550,000 500,000 0
In 2016, Al Tawaan would report (rounded to the nearest thousand) gross profit (loss) of:
Select one:
a. OR(223,000)
b. OR(206,000)
c. OR(150,000)
d. OR0.
3-
Al Tawaan Plastics entered into a contract to install a pipeline for a fixed price of OR2,200,000. Al Tawaan uses the cost recovery method of revenue recognition.
2015 2016 2017
Cost incurred 250,000 1,600,000 450,000
Estimated cost to complete 1,550,000 500,000 0
In 2017, Al Tawaan would report (rounded to the nearest thousand) gross profit (loss) of:
Select one:
a. OR 50,000
b. OR 2,000
c. OR(100,000)
d. OR 123,000
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