Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Asap please Skyscraper Construction Company has received a project that will take 5 years to finish. Total project costs is estimated to be $35,000,000 and

Asap please

image text in transcribed
Skyscraper Construction Company has received a project that will take 5 years to finish. Total project costs is estimated to be $35,000,000 and the company is charging $50,000,000 for the project. The company estimates that it will use up 10% of the said costs on the first year, 20% on the second year, 40% on the third year, 25% on the fourth year and 5% on the fifth year. 1.) Using percentage of completion method, how much should the company charge on the third year? 2.) Using the percentage of completion method, how much is the profit that the company will earn on the fifth year? 3.) Using the completed contract method, how much revenue should company recognize on the fifth year? 4.) Using completed contract method, how much cost will the company recognizes as an expense on the second year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J. Bieg, Judith Toland

21st Edition

1111531056, 978-1111531058

More Books

Students also viewed these Accounting questions

Question

=+What is the VIF for Age?

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago