Question
(TCO A) Tim Construction Co. began operations in 2016. Construction activity for 2016 is shown below. Tim uses the percentage of completion method. Contract Contract
(TCO A) Tim Construction Co. began operations in 2016. Construction activity for 2016 is shown below. Tim uses the percentage of completion method.
| Contract | Contract Price | Billings Through 12/31/16 | Collections Through 12/31/16 | Costs to 12/31/16 | Estimated Costs to Complete |
|---|---|---|---|---|---|
| 1 | $5,200,000 | $3,500,000 | $2,600,000 | $3,000,000 | $1,000,000 |
| 2 | $3,600,000 | $1,500,000 | $1,000,000 | $820,000 | $1,880,000 |
| 3 | $3,300,000 | $1,900,000 | $1,800,000 | $2,250,000 | $1,200,000 |
What amount of Gross Profit should Tim show on the Income Statement of 2016 related to Contract 3?
| $0 |
| $150,000 loss |
| $150,000 profit |
| None of the above |
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Network Security Auditing The Complete Guide To Auditing Network Security Measuring Risk And Promoting Comliance
Authors: Chris Jackson
1st Edition
1587053527, 978-1587053528
