-

Complete this question by entering your answers in the tabs below. Which method of accounting should Citation Builders, Inc adopt for its single-family houses? Citation Builders, Inc, bullds office buildings and single-family homes. The office bulidings are constructed under contract with teputable buyers. The homes are constructed in developments ranging from 10-20 homes and are typically sold during construction or soon after to secure the home upon completion, buyers must pay o deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of titie. Failure to pay the full amount results in forfeiture of the down payment. Occasionaly, homes remain unsold for as long as three months after construction. In these situations. sales price reductions are used to promote the sale. During 2021 . Citation began construction of an office building for Altamont Corporation. The total contract price is $26 million. Costs incurred. estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows: Also during 2021, Citation began a development consisting of 12 identical homes. Citation estimated that each home will sell for $920.000, but individual sales prices are negotiated with buyers. Deposits were received for eight of the homes, three of which weie. completed during 2021 and pald for in full for $920.000 each by the buyers. The completed homes cost $690,000 each to construct. The construction costs incurred during 2021 for the nine uncompleted homes totaled $4,140,000 Requlred: 1. Which method is most equivalent to recognizing revenue at the point of defivery? 2 Answer the following questions assuming that Citation concludes it does not qualify for revenue cecognition over time for its office buliding controcts: 2.e. How much revenue celated to this contract wil Citation report in its 2021 and 2022 income statements? 2.6. What is the amount of gross proft or loss to be recognized for the Altamont contract during 2021 and 2022 ? 2.- What win Citation report in its December 31,2021 , balance sheet refated to this contract? (19nore cash) 3. Answer the following questions assum ing that Ctation recognzer tevenue over time according to percentage of completion for its office buliding contracts. 3-6. How much revenue related to this controct wil Ciotion report ia its 2021 ond 2022 income statements? 3.b. What is the emount of gross proft or loss to bet recognized for the Atamont contract duting 2021 and 2022 ? 3.c. What wil Cration report in is Decemper 31,2021 , bolance sheet related to this controct? (ognore cash). 4. Assume the same information for 2021 and 2022, but that as of yearend 2022 the eqtimated cost to complete the otfice builang is 511000,000. Cration recognizes revenue over time according to percentege of completion for its office buliding contracts. 4. How much revenue reloted to this controct wi Citation report in the 2022 income statement? 4-b. What is the amount of grous protit or loss to be recognized for the Ataniont contract during 2.022 ? 5. Which method of sccounting should clotion eutepes. ins odopt for its single fomily novises? 6. What wil cisotion report in is 2021 income stote [ Ent and 2021 bolonce sheet related to the single-fomily nome business fignore Complete this questian by entering vour answers in the tabs below. Complete this question by entering your answers in the tabs below. What will Citation report in its December 31, 2021, balance sheet related to this contract? (Ignore cash.) Complete this question by entering your answers in the tabs below. Answer the following questions assuming that Citation recognizes revenue over time according to percentage of completion for its office building contracts. How much revenue related to this contract will citation report in its 2021 and 2022 income statements? What is the amount of gross profit or loss to be recognized for the Altamont contract during 2021 and 2022 ? (Loss amounts should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. Which method is most equivalent to recognizing revenue at the point of delivery? Answer the following questions assuming that Citation concludes it does not qualify for revenue recognition over time for its office building contracts: How much revenue related to this contract will citation report in its 2021 and 2022 income statements? What is the amount of gross profit or loss to be recognized for the Altamont contract during 2021 and 2022 ? (Leave no cells blank - be certain to enter " 0 " wherever required. Loss amounts should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. What will Citation report in its 2021 balance sheet related to the single-family home business (ignore cash in wre balance sheet)? Complete this question by entering your answers in the tabs below. What will Citation report in its December 31,2021 , balance sheet related to this contract? (Ignore cash.) What will Citation report in its 2022 balance sheet related to this coiftract? (Ignore cash.) Complete this question by entering your answers in the tabs below. Assume the same information for 2021 and 2022, but that as of year-end 2022 the estimated cost to complete the office building is $11,700,000. Citation recognizes revenue over time according to percentage of completion for its office building contracts. How much revenue related to this contract will Citation report in the 2022 income statement? What is the amount of gross profit or loss to be recognized for the Altamont contract during 2022? (Loss amounts should be indicated with a minus sign.) What will Citation report in its 2021 income statement related to the single-family home business (ignore cash in the balance sheet)