The company signed an $880,000 contract to build an environmentally friendly access trail to South Willow Lake.

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The company signed an $880,000 contract to build an environmentally friendly access trail to South Willow Lake. The project was expected to take approximately three years. The following information was collected for each year of the project-Year 1, Year 2, and Year 3:
The company signed an $880,000 contract to build an environmentally

The company uses the percentage-of-completion method of computing revenue from long-term construction contracts. Assume that the company employs the cost-to-cost method of estimating the percentage of completion. Compute the amount of revenue to be recognized in
(1) Year 1,
(2) Year 2,
(3) Year 3.

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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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