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On January 1,2020 , Spring Corp. contracted to build an office building for $4,300,000, that was expected to take three years to complete. Below is
On January 1,2020 , Spring Corp. contracted to build an office building for $4,300,000, that was expected to take three years to complete. Below is a schedule of actual costs incurred each year, estimates of future costs needed to complete the building, customer billings and collections on A/R. For each of the following questions, show well labeled, easy to understand computations to maximize partial credit. 1. Compute the total amount of profit Spring expects to recognize on the contract as of the end 2 Camnita tha RFVFNIIF and GROSS PROFIT (LOSS) recognized bv Arrow in each of the three Compute the balance in the Construction in Process (CIP) account as of the end of 2020. (2 points) 4. Assume the contract did NOT qualify for accounting over time. Compute the gross profit (loss) marnanizad in earh of the three vears. (3 points)
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