Problem 4 XYZ contracted to build a high-rise for $ 20,000,000 Construction began in 2008 and is
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Problem 4
| XYZ contracted to build a high-rise for | $ 20,000,000 |
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| Construction began in | 2008 |
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| and is expected to be completed in | 2010 |
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| 2008 | 2009 |
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| Costs incurred to date | $ 2,000,000 | $ 6,000,000 |
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| Estimated costs to complete | $ 8,000,000 | $ 6,000,000 |
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| XYZ uses the percentage-of-completion method. | |||||||||||
| (a) How much gross profit should be reported for 2007? Show your computation. | |||||||||||
| (b) How much gross profit should be reported for 2008? Show your computation. | |||||||||||
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