Question
The Simpson Construction Company recognizes revenue over time based on the percentage of completion of its long-term construction contracts. In 2016, Simpson began working on
The Simpson Construction Company recognizes revenue over time based on the percentage of completion of its long-term construction contracts. In 2016, Simpson began working on a construction contract. The information on this contract at the end of 2016 is as follows:
| Cost incurred during the year | $1,500,000 |
| Estimated additional cost to complete | 6,000,000 |
| Gross profit recognized in 2016 | 250.000 |
What is the contract price (total revenue) in this contract?
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
