Crane Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2021, Crane started work on a $ 61740000 construction contract that was completed in 2022. The following information was taken from Crane's 2021 accounting records: Progress billings $ 19404000 Costs incurred 18522000 Collections 12096000 Estimated costs to complete 37044000 What amount of gross profit should Crane have recognized in 2021 on this contract? $ 3087000 $ 6174000 $ 4116000 $ 2058000

Crane Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2021, Crane started work on a $ 61740000 construction contract that was completed in 2022. The following information was taken from Crane's 2021 accounting records: Progress billings $ 19404000 Costs incurred 18522000 Collections 12096000 Estimated costs to complete 37044000 What amount of gross profit should Crane have recognized in 2021 on this contract? $ 3087000 $ 6174000 $ 4116000 $ 2058000

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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Question

100%

Progress billings	$ 19404000
Costs incurred	18522000
Collections	12096000
Estimated costs to complete	37044000

What amount of gross profit should Crane have recognized in 2021 on this contract?

$ 3087000

$ 6174000

$ 4116000

$ 2058000

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