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Beck Construction Company began work on a new building project on January 1, 2017. The project is to be completed by December 31, 2019, for
Beck Construction Company began work on a new building project on January 1, 2017. The project is to be completed by December 31, 2019, for a fixed price of $108 million. The Following are the actual costs incurred and estimates of remaining costs to complete the project that was made by Beck's accounting staff:
Year | Actual costs incurred in each year | Estimated remaining costs to complete the project (measured at Dec. 31 of each year) | Gosss Profit or Loss Recorded | Computation here |
2017 | 30 Million | 60 Million | 6 million | |
2018 | 45 Million | 45 Million | ? | |
2019 | 35 Million | 0 | 10 Million |
I cant figure out the loss in 2018. The answer says it is a loss of(18mil) But why is it 6million dollar profit plus a 12 million dollar loss should equal 6Million loss not 18 million profit please explain.
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