Question
In 2018, ND Inc. is awarded a $5 billion contract to build a city infrastructure. This is a three-year project and the following information is
In 2018, ND Inc. is awarded a $5 billion contract to build a city infrastructure. This is a three-year project and the following information is available:
|
| 2018 | 2019 | 2020 |
| Construction costs incurred during the year | $1 billion | $1.5 billion | $1.25 billion |
| Estimated costs to complete | $3 billion | $1.75 billion | $0 |
Whats the revenue recognized in 2019 using the percentage-of-completion method?
| A. | $1.30 billion | |
| B. | $1.69 billion | |
| C. | $1.25 billion | |
| D. | $2.06 billion |
Step 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
Primary Science Audit And Test
Authors: Jenny Byrne, Andri Christodoulou, John Sharp
4th Edition
1446282732, 978-1446282731
