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Using Percentage-of-Completion and Completed Contract Methods Halsey Building Company signed a contract to build an office building for $66,000,000. The scheduled construction costs follow. Year
Using Percentage-of-Completion and Completed Contract Methods | ||||
Halsey Building Company signed a contract to build an office building for $66,000,000. The scheduled construction costs follow. | ||||
Year | Cost | |||
2016 | $14,000,000 | |||
2017 | 20,000,000 | |||
2018 | 10,000,000 | |||
Total | $44,000,000 | |||
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 |
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