Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During 2014, Nilsen Company started a construction job with a contract price of $1,610,000. The job was completed in 2016. The following information is available.
During 2014, Nilsen Company started a construction job with a contract price of $1,610,000. The job was completed in 2016. The following information is available.
2014 | 2015 | 2016 | |
Costs incurred to date | $393,190 | $832,960 | $1,112,000 |
Estimated costs to complete | $565,810 | $263,040 | 0 |
Billings to date | $301,300 | $900,200 | $1,610,000 |
Collections to date | $263,700 | $801,300 | $1,376,000 |
Show work
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used Gross profit recognized in 2014 Gross profit recognized in 2015 Gross profit recognized in 2016 247,380 390,640 498,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started