Question
On February 1, 2020, Pharoah Contractors agreed to construct a building at a contract price of $2,840,000. The total estimated construction costs would be $2,155,000
On February 1, 2020, Pharoah Contractors agreed to construct a building at a contract price of $2,840,000. The total estimated construction costs would be $2,155,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows: 2020 2021 2022 Total costs incurred to date $ 775,800 $ 1,359,950 $ 2,350,000 Estimated costs to complete 1,379,200 945,050 -0- Customer billings to date 1,100,000 2,155,000 2,840,000 Collections to date 1,000,000 1,750,000 2,950,000 Calculate the gross profit / (loss) that should be recognized for 2020, 2021, and 2022 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 2021 2022 Gross profit / (loss) $ $ $.ASAP
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