Question
Long-Term Contracts Newberg Construction Corporation contracted to construct a building for $400,000. Construction began in 2017 and was completed in 2018. Data relating to the
Long-Term Contracts
Newberg Construction Corporation contracted to construct a building for $400,000. Construction began in 2017 and was completed in 2018. Data relating to the contract are as follows:
| Year Ended December 31, | ||
| 2017 | 2018 | |
| Costs incurred | $200,000 | $110,000 |
| Estimated costs to complete | 100,000 | |
Newberg determined that its performance obligation was satisfied over time.
Required
Newberg uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2017 and 2018, respectively, how much gross profit should Newberg report? If required, round percentage completed to one decimal place. When required, round dollar amounts to the nearest dollar.
| NEWBURG CONSTRUCTION CORPORATION | ||
| Gross Profit / Loss Reported | ||
| 2017 and 2018 | ||
| 2017 | 2018 | |
| Costs incurred to date | $ | $ |
| Estimated costs to complete | $100,000 | |
| Percent completed | % | % |
| Estimated profit on contract | $ | $ |
| Gross profit to be recognized | $ | $ |
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