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Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2021, Ivanhoe began work on a contract it had received which provided for a contract
Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2021, Ivanhoe began work on a contract it had received which provided for a contract price of $39500000. Other details follow:
2021 Costs incurred during the year $18800000 Estimated costs to complete as of December 31 12800000 Billings during the year 17500000 Collections during the year 9700000
What should be the gross profit recognized in 2021?
$7900000 $4700000 $20700000 $1566667
| 2021 | |
| Costs incurred during the year | $18800000 |
| Estimated costs to complete as of December 31 | 12800000 |
| Billings during the year | 17500000 |
| Collections during the year | 9700000 |
What should be the gross profit recognized in 2021?
$7900000
$4700000
$20700000
$1566667
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