In Spring 2017, Bava Construction signed a contract with the city of Springfield, to construct a new
Fantastic news! We've Found the answer you've been seeking!
Question:
In Spring 2017, Bava Construction signed a contract with the city of Springfield, to construct a new city hall for $200 million. Bava expects to construct the building within two years and incur expenses of $150 million, which means the company earns a $50 million profit on the contract. Bava incurred $60 million in costs during 2017 and $90 million in 2018 to complete the contract on time.
Using the cost-to-cost method, fill in the table below indicating how much revenue and profit Bava will recognize in both 2017 and 2018.
Year . Contract Sales . Percent completed . Revenue Recognized . Costs incurred (expenses) . Profit Recognized
2017 . $200 million $60 million
2018 $90 million
Posted Date: