Question 27 (1 point)

Gagandeep Singh: Attempt 1

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On January 2, 2020, Gabon Corp. purchases a new machine. The company makes a $ 2,000 cash down payment, and agrees to pay four annual instalments of $ 4,000 each, starting December 31, 2020, signing a non-interest-bearing note to this effect The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 9% p.a. Rounding to the nearest dollar (If necessary), Gabon should record the cost of the machine at

$ 12.959.

$ 16,000.

$ 18,000

$ 14,959.

Question 30 (1 point)

Blues Construction Corp has consistently used the percentage of completion method. During 2020. Blues entered into a fixed price contract to construct an office building for $6,000,000. Information relating to the contract is as follows Percentage of completion at the end of 2020: 15% Percentage of completion at the end of 2021: 45%: Estimated total cost at the end of 2020: $4,500,000; Estimated total cost at the end of 2021: $4,800,000: Cumulative gross profit recognized at the end of 2020: $225,000: Cumulative gross profit recognized at the end of 2021: $540,000. Under the earnings approach, contract costs incurred during 2020 were

$1.575,000.

$ 2.160.000

$1.485.000

$1.440,000

Pls. Answer fast within 10-15 min.