Dengar
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dengar

Transcribed Image Text:Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. 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
1
2
nuwN
3
4
5
Costs Incurred during Year
2024
2025
2026
$ 1,500
$ 2,100
$ 900
2,400
900
1,500
1,500
1,600
1,000
Situation
1
2
3
4
5
500
500
500
2,100
3,000
3,000
3,000
2024
1,300
1,800
Estimated Costs to Complete
(As of the End of the Year)
2024
2025
2026
$ 3,000
3,000
3,000
3,500
Revenue Recognized
Over Time
2025
6
Required:
Complete the following table.
Note: Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000).
Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be
indicated by a minus sign.
3,500
4,600
2026
$ 900
2,400
1,500
875
Gross Profit (Loss) Recognized
1,500
1,700
2024
Revenue Recognized
Upon Completion
2025
2026
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