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Please help.Thank you Blossom Construction is constructing an office builditg under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress
Please help.Thank you
Blossom Construction is constructing an office builditg under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and paymerts of $2050000 each quarter. The total contract price is $24600000 and Blossom estimates total costs of $18250000. Blossom estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31,2022 , Blossom Construction estimates that it is 75% complete with the building: however, the estimate of total costs to be incurred has risen to $18500000 due to unanticipated price increases. Blossom Construction completes the remaining 25% of the building construction on December 31,2023 , as scheduled. At that time the total costs of construction are $19250000. What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Blossom will recognize for the year ended December 31,2023 ? Revenue Expenses $61500005375000$24600000$19250000$6150000$4812500$4812500$4812500 Step by Step Solution
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