Question
Rizzo, Inc. is constructing a building for a client. The company began work in 2023 on a contract for $24,350,000. Other data are as follows:
Rizzo, Inc. is constructing a building for a client. The company began work in 2023 on a contract for $24,350,000. Other data are as follows:
| 2023 | 2024 | |
| Costs incurred to date | $15,000,000 | $23,000,000 |
| Estimated costs to complete | 7,500,000 | |
| Billings to date | 8,000,000 | 24,350,000 |
| Collections to date | 6,500,000 | 22,500,000 |
Rizzo uses the completed-contract method, what gross profit should the company recognize in 2024?
Question 21 options:
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|
|
| a) | $1,350,000 |
|
|
|
| b) | $116,667 |
|
|
|
| c) | $24,350,000 |
|
|
|
| d) | $0.00 |
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
