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In early 2023, Cityline Corp. won a contract to build a rapid transit line along the Broadway corridor. The contract was for $2.1 billion
In early 2023, Cityline Corp. won a contract to build a rapid transit line along the Broadway corridor. The contract was for $2.1 billion to be received over the construction period of six years, ending in November 2029. Cityline has a December 31 year-end and uses the percentage of completion method to account for long-term contracts. Required Requirement a (i). Cityline's management expects the gross margin on the total project to be 40% and that $189 million would be incurred on the project by December 31, 2023. How much gross profit (or loss) will Cityline record in the 2023 fiscal year if management's estimates are accurate? (Enter a "0" for any zero balances. Use a minus sign or parentheses to enter a loss.) Current gross profit (loss) million
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