On January 2, 20x0, Whitney Construction Company signed a contract to provide paved roads to a new housing development. The project wil faut 2 years, and total payment will be $12, to be paid completion of the project. Whitney is budgeted cost for the project is $9 million Work will progress everly over the 2 years on December 31, 20X0 Wwwccountants you what revenue should be recorded for 20x0 Couts of $45 million were incurred during 20x0. Read the requirements Requirement 1. Suppose Whitney uses the percentage of comption method. What revenou should be recorded for 20x! What profit is recognized in 2007 (Erier amounts to the rest orcheta mon X Whitney uses the percentage of completion method, it will record revenue of $ition and yield a prott of million for 200 nequins KO? (E 1. Suppose Whitney uses the percentage of completion method. What revenue should be recorded for 20X0? What profit is recognized in 20X0? 2. Suppose Whitney uses the completed contract method. What revenue should be recorded for 20x0? What profit is recognized in 20X0? 3. Assume that the contract was with a large corporation that is very stable. Under current U.S. GAAP, which method should Whitney use? 4. Assume that the contract is with a small developer and the economy has taken a downturn during 20X0, making payment of the final contract price highly uncertain. However, Whitney Company still believes it will receive payment and continues working on the project. Under current U.S. GAAP, which method should Whitney use? 5. How would your answers to requirement 4 change if Whitney were reporting under IFRS rather than U.S. GAAP? Print Done