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Destiny Co. has entered into a contract beginning January 1, 2017, to build a bridge in Ottawa. It estimates that the bridge will cost $7
Destiny Co. has entered into a contract beginning January 1, 2017, to build a bridge in Ottawa. It estimates that the bridge will cost $7 million and will take three years to construct The bridge will be billed to the municipality at $10 million. The following data are for the construction period: 2017 2018 2019 Costs incurred to date 3,000,000 4,000,000 8,000,000 Estimated costs to complete 9,000,000 4,000,000 0 A. Under the earnings approach and percentage of completion method, what is the estimated gross profit in 2017? B. Under the earnings approach and percentage of completion method, what is the estimated revenue in 2018? C. Under the earnings approach and percentage of completion method, what is the estimated gross profit in 2018? D. Under the completed contract method, what is the gross profit recorded in 2019? Write your answers in the form XXX,XXX and X,XXX,XXX or (XXX,XXX) and (X,XXX,XXX). Do not include a dollar sign
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