What is the amount of the contract asset on Biden's balance sheet at the end of year 2?


what is the income statement presentation related to this contract of year 2?


What is Biden's account receivable as of end of year 2?

 

You are provided with the following information related to one of Biden Construction's contracts. The contract amount is for $3,600,000. The building is controlled by the customer throughout the term of the contract. Biden reports revenue in accordance with IFRS and takes a contract-based approach to revenue recognition. A colleague had correctly prepared the following calculations related to the long-term contract, but had to take time off work. Costs incurred during the year Estimated future costs Percentage complete Revenue recognized during the year Progress billings during the year Collections during the year Year 1 500,000 2,000,000 20.00% 720,000 400,000 300,000 Year 2 1,200,000 800,000 68.00% 1,728,000 1,400,000 800,000 Year 3 700,000 0 100.00% 1,152,000 1,800,000 2,140,000