Question
Calulate Income (loss) recognition; Long term contract; revenue recognition over time. Brady Construction Company contracted to build an apartment complex for a price of $6,700,000.
Calulate Income (loss) recognition; Long term contract; revenue recognition over time. Brady Construction Company contracted to build an apartment complex for a price of $6,700,000. Construction began in 2016 and was completed in 2018. 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 | 2016 | 2017 | 2018 | 2016 | 2017 | 2018 | ||||||
1 | 1,670 | 2,640 | 1,410 | 4,050 | 1,410 | |||||||
2 | 1,670 | 1,410 | 3,080 | 4,050 | 3,080 | |||||||
3 | 1,670 | 2,640 | 2,960 | 4,050 | 2,860 | |||||||
4 | 670 | 3,170 | 1,340 | 4,690 | 960 | |||||||
5 | 670 | 3,170 | 2,490 | 4,690 | 2,860 | |||||||
6 | 670 | 3,170 | 3,500 | 6,255 | 3,230 | |||||||
Required: |
Complete the following table. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.) |
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