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Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2021 and was completed in 2023. The following
Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2021 and was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars.
Estimated Costs to Complete | |||||||||||||||||||
Costs Incurred During Year | (As of the End of the Year) | ||||||||||||||||||
Situation | 2021 | 2022 | 2023 | 2021 | 2022 | 2023 | |||||||||||||
1 | 1,500 | 2,100 | 900 | 3,000 | 900 | ||||||||||||||
2 | 1,500 | 900 | 2,400 | 3,000 | 2,400 | ||||||||||||||
3 | 1,500 | 2,100 | 1,600 | 3,000 | 1,500 | ||||||||||||||
4 | 500 | 3,000 | 1,000 | 3,500 | 875 | ||||||||||||||
5 | 500 | 3,000 | 1,300 | 3,500 | 1,500 | ||||||||||||||
6 | 500 | 3,000 | 1,800 | 4,600 | 1,700 | ||||||||||||||
Required: Complete the following table. (Enter answers in dollars. Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.)
Gross Profit (Loss) Recognized Revenue Recognized Revenue Recognized Over Time Upon Completion 2022 2023 2021 2022 2023 0 0 Situation 2021Step by Step Solution
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