Question
Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will
Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $648,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $972,000. The following data pertain to the construction period. 2014 2015 2016 Costs to date $291,600 $486,000 $658,800 Estimated costs to complete 356,400 162,000 0 Progress billings to date 291,600 594,000 972,000 Cash collected to date 259,200 540,000 972,000 Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2014 2015 2016 Gross profit / (loss) that recognized $ $ $ Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2014 2015 2016 Gross profit / (loss) that recognized $ $ $
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