Brady Construction Company contracted to build an apartment complex for a price of $5,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 2024 1 2 3 Situation 1 2 Costs Incurred during Year 2026 $1,020 2,560 1,920 1,080 1,580 2,200 3 4 5 6 $ 1,540 1,540 1,540 540 540 540 2025 $2,250 1,020 2,250 3,040 3,040 3,040 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,270 $ 1,020 3,270 2,560 1,820 3,270 3,780 895 1,820 3,780 5,000 2,060 Gross Profit (Loss) Recognized TIL Revenue Recognized Over Time 2024 2025 2436 Revenue Recognized Upon Completion 2026 2024 2025
Brady Construction Company contracted to build an apartment complex for a price of $5,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 2024 1 2 3 Situation 1 2 Costs Incurred during Year 2026 $1,020 2,560 1,920 1,080 1,580 2,200 3 4 5 6 $ 1,540 1,540 1,540 540 540 540 2025 $2,250 1,020 2,250 3,040 3,040 3,040 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,270 $ 1,020 3,270 2,560 1,820 3,270 3,780 895 1,820 3,780 5,000 2,060 Gross Profit (Loss) Recognized TIL Revenue Recognized Over Time 2024 2025 2436 Revenue Recognized Upon Completion 2026 2024 2025
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Gross profit
VIEWStep 2: Calculation of % of completion, revenue recognition and Gross profit for situation 1-3:
VIEWStep 3: Calculation of % of completion, revenue recognition and Gross profit for situation 4-6:
VIEWStep 4: Calculation of Gross Profit - Revenue on completion - Brady Construction Company for situation 1-6::
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