A contractor is faced with two alternatives for choosing the construction site for the asphalt road he will buildThese Site A is a little far from the road to be asphalted, and a monthly rent of 7000 TL will be paid for the building and landIf this construction site is selected, asphalting It is foreseen that the work will be completed in 24 monthsSite B is closer to the road to be built and 13000 TL monthly rent will be paid for the hinasi and its land, and in this case, it is predicted that the asphalting work will be completed in 18 months. A cost of 12000 TL is required for the removal of construction site A, and 9000 TL is required for the removal of 15 construction sites nearby. In addition, considering the remote construction site A, there is an expense of 1000 TL per month.

A contractor is faced with two alternatives for choosing the construction site for the asphalt road he will buildThese Site A is a little far from the road to be asphalted, and a monthly rent of 7000 TL will be paid for the building and landIf this construction site is selected, asphalting It is foreseen that the work will be completed in 24 monthsSite B is closer to the road to be built and 13000 TL monthly rent will be paid for the hinasi and its land, and in this case, it is predicted that the asphalting work will be completed in 18 months. A cost of 12000 TL is required for the removal of construction site A, and 9000 TL is required for the removal of 15 construction sites nearby. In addition, considering the remote construction site A, there is an expense of 1000 TL per month.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10C

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