Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
green homes enters into a 3 - year contract to hold pink, inc. a new office building for $13,000. Assume the long-term contract qualifies for
| green homes enters into a 3 - year contract to hold pink, inc. a new office building for $13,000. Assume the long-term contract qualifies for over a period of time revenue recognition and green homes uses the cost-to-cost ratio to measure progress towards completion. given the following cost data: | ||||||||||||||
| 2021 | 2022 | 2023 | ||||||||||||
| Total Costs to Date | 5,000 | 7,000 | 10,000 | |||||||||||
| Total Expected Costs | 8,000 | 10,000 | 10,000 | |||||||||||
| % Complete | 62.50% | 70% | 100% | |||||||||||
| What is the amount of revenue recognized in 2022? | ||||||||||||||
| a. | $975 | |||||||||||||
| b. | $3,900 | |||||||||||||
| c. | $9,100 | |||||||||||||
| d. | $8,125 | |||||||||||||
| e. | None of the options | |||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Financial Accounting For Managers
Authors: Sanjay Dhamija
3rd Edition
9789352868339
