Question
During 2020, Blue Spruce Corporation started a construction job with a contract price of $6.16 million. Blue Spruce ran into severe technical difficulties during construction
During 2020, Blue Spruce Corporation started a construction job with a contract price of $6.16 million. Blue Spruce ran into severe technical difficulties during construction but managed to complete the job in 2022. The contract is non-cancellable. Under the terms of the contract, Blue Spruce sends billings as revenues are earned. Billings are non-refundable. The following information is available:
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $ 880,000 | $3,080,000 | $6,060,000 | |||
| Estimated costs to complete | 4,620,000 | 3,080,000 | -0- |
Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method.
2020
2021
2022
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Forensic Analytics Methods And Techniques For Forensic Accounting Investigations
Authors: Mark J. Nigrini
2nd Edition
1119585767, 9781119585763
