Question
3. (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $800000. Additional
3. (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $800000. Additional information was provided:
As of Dec 31. 2012 2013
Percentage of completion 15% 40%
Estimated totalexpected costs $550,000 $580,000
Gross profit recognized (Cumulative) $50,000 $99,000
Contracted costs incurred during 2013 were(Points : 5)
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
