Brady Construction Company contracted to build an apartment complex for a price of $6,600,000. Construction began in 2024 andwas completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for theproject. All costs are stated in thousands of dollars.Costs Incurred during YearEstimated Costs to Complete(As of the End of the Year)2026Situation12024$ 1,6602025$ 2,6102026$ 1,3802024$ 3,9902025$ 1,380234561,6601,3803,0403,9903,0401,6602,6102,8803,9902,7806603,1601,3204,6209556603,1602,4204,6202,7806603,1603,4006,1553,140Complete the following table.Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should beindicated by a minus sign.Required:Gross Profit (Loss) RecognizedSituation2024Revenue Recognized Over Time202520262024Revenue Recognized Upon Completion20262025122345699

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Answered: Brady Construction Company contracted…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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6b
Mikell Builders contracted to build a high-rise for $10,000,000. Construction began in 2020 and is expected to be completed in 2022. Data for 2020 and 2021 are: 2020 2021 2022 Costs to date 4,500,000 7,200,000 8,600,000 Estimated costs to complete 3,000,000 1,200,000 0 Mikell uses the percentage-of-completion method. Required: Compute the amount of gross profit (loss) that Mikell must report for 2020. Compute the amount of gross profit (loss) that Mikell must report for 2021. Compute the amount of gross profit (loss) that Mikell must report for 2022. Assume instead that Mikell uses the completed contract method. Compute the amount of gross profit (loss) that Mikell must report for each the three years - 2020, 2021, and 2022.
Sandhill Builders contracted to build a high-rise for $29,000,000. Construction began in 2024 and is expected to be completed in 2026. Data for 2024 and 2025 are: Costs incurred to date Estimated costs to complete (a) 2024 $3,700,000 14,800,000 Sandhill uses the percentage-of-completion method. Gross profit $ 2025 $10,920,000 10,080,000 How much gross profit should be reported for 2024?
ni.9
On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which The is estimated cost P31,200,000. company recognizes construction to Data on this project for 2022-2024 follow: Est'd Costs revenue over time. Contract Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 13,156,000 2022 5,460,000 9,984,000 2023 2024 15,756,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. contract was delayed for 8 weeks In 2024, the What is the gross profit for 2024? 1,164,000 1,466,400 1,724,000 1,824,000 А. с. в. D.
Arizona Desert Homes (ADH) constructed a new subdivision during 2023 and 2024 under contract with Cactus Development Company. Relevant data are summarized below: Contract amount Cost: Gross profit: Contract billings: 2023 2024 2023 2024 2023 2024 $ 3,405,000 1,290,000 690,000 935,000 490,000 1,702,500 1,702,500 ADH recognizes revenue upon completion of the contract. What is the journal entry in 2024 to record revenue?
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 $ 3,096,000 5,504,000 2,600,000 2,400,000 2025 Cost incurred during the year Estimated costs to complete as of year-end $ 3,870,000 1,634,000 4,366,000 Billings during the year 3,034,000 Cash collections during the year 4,200,000 3,400,000 Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2026 $ 1,797,400 0
1.On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow:Contract BillingsCosts incurredEst’d Costs to Complete2022 10,500,000 5,460,000 20,540,0002023 12,500,000 9,984,000 13,156,0002024 14,440,000 15,756,000 -The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeksWhat is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000 2.MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below:Site Contract PriceCost IncurredEstimated Costs to CompleteBillings on ContractCollections on Billings1 5,000,000 3,750,000 - 5,000,000 5,000,0002 7,000,000 1,000,000 4,000,000 900,000…
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The following costs were incurred by Barak Klever Ltd in 2020 in the design andconstruction of a new office building over a nine-month period during 2020:GH¢000Feasibility study 8Architects' fees 100 Site clearance (by external demolition professionals) 80Construction materials 600Cost of own inventories used in the construction(net realisable value if sold outside the company GH¢24,000) 30Internal construction staff salaries during period of construction 360External contractor costs 2,400Income from renting out part of site as storage depotduring early phase of construction (12)3,566Required:In accordance with IAS 16 Property, plant and equipment, calculate the amount that Barak KleverLtd should capitalise as property in the financial statements for the year ending 31 December 2020 b. Courage Hodey Inc. owns the following properties as at 31 December 2019:Property: Fair value (GH¢million)Land with future use undetermined 3.2Factory rented to Courage Hodey's subsidiary under an…

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