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Question 2 (15 marks) On January 1, 2020, assume that Lamda Company signed a contract to construct a building for $1,800,000. The estimated time to
Question 2 (15 marks) On January 1, 2020, assume that Lamda Company signed a contract to construct a building for $1,800,000. The estimated time to complete is 4 years with an estimated total costs of $1,500,000. Expected construction costs are $300,000 for 2020, $600,000 for 2021, $375,000 for 2022 and $ $225,000 for 2023. Using completed contract method, determine the revenue, cost and profit for 2021? Your answer Using percentage of completion method, determine the revenue, cost and profit for 2022? Your
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