Question
For the next question, consider the following information: Accounts receivable, 12/31/2018 (from construction progress billings) $37.5 Actual construction costs incurred in 2018 $135 Cash collected
For the next question, consider the following information:
| Accounts receivable, 12/31/2018 (from construction progress billings) | $37.5 |
| Actual construction costs incurred in 2018 | $135 |
| Cash collected on project during 2018 | $105 |
| Construction in progress, 12/31/2018 | $207 |
| Estimated percentage of completion during 2018 | 60% |
In 2018, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions):What is the amount of gross profit on the project recognized by CCC during 2018?
| a. | $48 million | |
| b. | Cannot be determined from the given information. | |
| c. | $160 million | |
| d. | $72 million |
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IT Audit Control And Security
Authors: Robert R. Moeller
1st Edition
0471406767, 9780471406761
