Current Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- (a) Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) 2023 100.000.00 2024 2025 100000
Current Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- (a) Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) 2023 100.000.00 2024 2025 100000
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 19RE
Related questions
Question
![Current Attempt in Progress
During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical
difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the
contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available:
(a)
2023
2024
2025
Costs incurred to date
$500,000 $1,750,000
$3,400,000
Estimated costs to complete
2,625,000
1,750,000
-0-
- Your answer is partially correct.
Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Gross profit/(loss)
$
2023
2024
-100,000.00
$
2025
$
100000
द](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0985acd5-ff87-4405-a8ee-607a82df6a1a%2F031815c2-4ccc-47df-b45f-cce93610f0b1%2Fi9trcs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical
difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the
contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available:
(a)
2023
2024
2025
Costs incurred to date
$500,000 $1,750,000
$3,400,000
Estimated costs to complete
2,625,000
1,750,000
-0-
- Your answer is partially correct.
Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Gross profit/(loss)
$
2023
2024
-100,000.00
$
2025
$
100000
द
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