Question
The following data pertain to Pells Co.s construction job, which commenced during Year 2. Project 1 Project 2 Contract Price $420,000 $300,000 Costs incurred during
The following data pertain to Pells Co.s construction job, which commenced during Year 2.
|
| Project 1 | Project 2 |
| Contract Price | $420,000 | $300,000 |
| Costs incurred during Year 2 | 240,000 | 280,000 |
| Estimated costs to complete | 120,000 | 40,000 |
| Billed to customers during Year 2 | 150,000 | 270,000 |
| Received from customers during Year 2 | 90,000 | 250,000 |
If Pell used the completed contract method, what amount of gross profit (loss) would Pell report in its Year 2 income statement?
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
