Using Percentage-of-Completion and Completed Contract Methods

Halsey Building Company signed a contract to build an office building for $40,000,000. The scheduled construction costs follow.

Year	Cost
2016	$9,000,000
2017	15,000,000
2018	6,000,000
Total	$30,000,000

The building is completed in 2018. For each year, compute the revenue, expense, and gross profit reported for this construction project using each of the following methods. a. Percentage-of-completion method

	2016	2017	2018
Revenue	Answer	Answer	Answer
Expense	Answer	Answer	Answer
Gross Profit	Answer	Answer	Answer

b. Completed contract method

	2016	2017	2018
Revenue	Answer	Answer	Answer
Expense	Answer	Answer	Answer
Gross Profit	Answer	Answer	Answer