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(b) Your answer is incorrect. Assuming the same facts as those above except that Cullumber uses the cost-recovery method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Revenue recognized in 2026 $

(b) Your answer is incorrect. Assuming the same facts as those above except that Cullumber uses the cost-recovery method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Revenue recognized in 2026 $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cullumber Construction Company uses the percentage-of-completion method of accounting. In 2025, Cullumber began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 $ 2025 $ $658,560 909,440 421,000 348,000 What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) 918540 2026 $1,408,000 1268460 -0- 1,667,000 1,527,000
Transcribed Image Text:Cullumber Construction Company uses the percentage-of-completion method of accounting. In 2025, Cullumber began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 $ 2025 $ $658,560 909,440 421,000 348,000 What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) 918540 2026 $1,408,000 1268460 -0- 1,667,000 1,527,000
(b) Your answer is incorrect. Assuming the same facts as those above except that Cullumber uses the cost-recovery method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Revenue recognized in 2026 $
Transcribed Image Text:(b) Your answer is incorrect. Assuming the same facts as those above except that Cullumber uses the cost-recovery method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Revenue recognized in 2026 $
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