1 points\ Q2: Project cost estimate

=$10

mil; contract totals

$12

mil;

$2

mil of costs occur in Years 1 and 2 ; invoiced amounts

$4

mil in Year 1 and

$3

mil in Year 2;

$1

mil in cash collected each year. Year 2 net income under percentage of completion is:\

$1

million\

$400,000

\

$1

million loss

Q2: Project cost estimate =$10 mil; contract totals $12 mil; $2 mil of costs occur in Years 1 and 2 ; invoiced amounts $4 mil in Year 1 and $3 mil in Year 2; $1 mil in cash collected each year. Year 2 net income under percentage of completion is: $1 million $400,000 $1 million loss