Question
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below:
| 2024 | 2025 | |
|---|---|---|
| Costs incurred during the year | $ 376,000 | $ 2,265,000 |
| Estimated costs to complete as of 12/31 | 1,504,000 | 0 |
| Billings during the year | 535,000 | 1,810,000 |
| Cash collections during the year | 500,000 | 1,845,000 |
Question: Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time.
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Intermediate Accounting
Authors: David Spiceland
11th Edition
1264134525, 9781264134526
