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Pell Co.s construction jobs, which commenced during 1999: Project 1 Project 2 Contract Price $420,000 $300,000 Costs incurred during 1999 240,000 280,000 Estimated costs to
Pell Co.s construction jobs, which commenced during 1999: Project 1 Project 2 Contract Price $420,000 $300,000 Costs incurred during 1999 240,000 280,000 Estimated costs to complete 120,000 40,000 Billed to customers during 1999 150,000 270,000 Received from customers during 1999 90,000 250,000 A) If Pell used the completed method, what amount of gross profit (loss) would Pell report in its 1999 income statement? a. $(20,000) b. $0 c. $340,000 d. $420,000 B) If Pell used the percentage-of completion method, what amount of gross profit (loss) would Pell report in its 1999 income statement? a. $(20,000) b. $20,000 c. $22,500 d. $40,000 ** Please show computations
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