Citation Bulders, Incorporated, bulds office bulidings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging from 1020 homes and are fypically soid during construction or soon after. To secure the home upon completion, buyers must pay a deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of titie. Fallure to pay the full amount results in forfeiture of the down payment. Occasionally, homes remain unsold for as long as three months after construction. In these sttuations, sales price reductions are used to promote the sale Duting 2024, Citation began construction of an office bulding for Altamont Corporation. The total contract price is $23 milition. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows: Atso during 2024, Citation began a development consisting of 12 identical homes. Citation estimated that each home will sell for $860.000, but individual sales pinces are negotated with buyers. Deposits were recerved for elght of the homes, three of which were completed during 2024 and paid for in full for $860,000 each by the buyers. The completed homes cost $645,000 each to construct The construction costs incurred during 2024 for the nine uncompleted homes totaled $3,870,000 Required: 1. Which method is most equivalent to recognizing revenue at the point of delvery? 2. Answer the following questions, assuming that Citation concludes it does not qualify for revenue recognition over time for its office buliding contracts 2-6. How much revenue related to this contract will Citation report in its 2024 and 2025 income statements? 2-b. What is the amount of gross profit or loss to be recognized for the Aitamont contract during 2024 and 2025 ? 2-c. What will Citation report in its December 31,2024, baiance sheet related to this contract? (ignore cash) 3. Answer the following questions assuming that Citation recognizes revenue over time according to percentage of completion for its office bullding contracts. 3-0. How much revenue related to this contract will Cltation report in its 2024 and 2025 income statements? 3-b. What is the amount of gross pront or loss to be recognized for the Altamont contract during 2024 and 2025 ? 3-c. What will Citation report in its December 31, 2024, balance sheet related to this contract? (ignore cash) 4. Assume the same intormation for 2024 and 2025 , but that as of year-end 2025 the estimated cost to complete the office building is $10,350,000. Cltation recognizes revenue over time according to percentage of completion for its office building contracts. 4-a. How much revenue related to this contract will Citation report in the 2025 income statement? 4-b. What is the amount of gross profit or loss to be recognized for the Altamont contract during 2025? 4-c. What will Citation report in its 2025 balance sheet related to this contract? (ignore cash) 5. Which method of accounting shouid Citation Builders, Incorporated adopt for its single-family houses? 6. What will Citation report in its 2024 income statement and 2024 balance sheet related to the single-family home business (ignore cash in the balance sheet)? What will Citation report in its December 31,2024 , balance sheet related to this contract? Answer the following questions, assuming that Citation recognizes revenue over time according to for its office building contracts. How much revenue related to this contract will Citation report in its statements? What is the amount of gross profit or loss to be recognized for the Altamont contract d Note: Loss amounts should be indicated with a minus sign. What will Citation report in its 2024 income statement and 2024 balance sheet rela :ash in the balance sheet)? Complete this question by entering your answers in the tabs below. What will Citation report in its December 31,2024 , balance sheet related to this contract Assume the same information for 2024 and 2025 , but that as of year-end 2025 the es building is $10,350,000. Citation recognizes revenue over time according to percentag contracts. How much revenue related to this contract will Citation report in the 2025 ir of gross profit or loss to be recognized for the Altamont contract during 2025 ? Note: Loss amounts should be indicated with a minus sign. What will Citation report in its 2025 balance sheet related to this contract? (Ignore cash.) What will Citation report in its 2024 income statement related to the single-family home business? What will Citation report in its 2024 balance sheet related to the single-family home business? Which method is most equivalent to recognizing revenue at the point of delivery? Answer the following qu that Citation concludes it does not qualify for revenue recognition over time for its office building contract revenue related to this contract will Citation report in its 2024 and 2025 income statements? What is the profit or loss to be recognized for the Altamont contract during 2024 and 2025 ? Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated
