During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The following information is available. The contract is non-cancellable. Costs incurred to date Estimated costs to complete Billings to date (non-refundable) Collections to date (a) 2023 $448,000 672,000 336,000 302,400 2024 $924,000 308,000 1,008,000 907,200 2025 $1,198,400 0 1,792,000 1,596,000
During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The following information is available. The contract is non-cancellable. Costs incurred to date Estimated costs to complete Billings to date (non-refundable) Collections to date (a) 2023 $448,000 672,000 336,000 302,400 2024 $924,000 308,000 1,008,000 907,200 2025 $1,198,400 0 1,792,000 1,596,000
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 26E
Related questions
Question
![During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The
following information is available. The contract is non-cancellable.
Costs incurred to date
Estimated costs to complete
Billings to date (non-refundable)
Collections to date
(a)
2023
2024
$448,000 $924,000
672,000
336,000 1,008,000
907,200
302.400
308,000
0000
2025
$1,198,400
0
1,792,000
1,596,000
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
nont
ROOF](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2Fdaec0765-b49b-4da7-9f47-ad279ed128e6%2Frsxwfq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The
following information is available. The contract is non-cancellable.
Costs incurred to date
Estimated costs to complete
Billings to date (non-refundable)
Collections to date
(a)
2023
2024
$448,000 $924,000
672,000
336,000 1,008,000
907,200
302.400
308,000
0000
2025
$1,198,400
0
1,792,000
1,596,000
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
nont
ROOF
![During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The
following information is available. The contract is non-cancellable.
Costs incurred to date
Estimated costs to complete
Billings to date (non-refundable)
Collections to date
(a)
2023
2024
$448,000 $924,000
672,000
336,000 1,008,000
907,200
302.400
308,000
0000
2025
$1,198,400
0
1,792,000
1,596,000
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
nont
ROOF](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2Fdaec0765-b49b-4da7-9f47-ad279ed128e6%2Fahzo8vv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The
following information is available. The contract is non-cancellable.
Costs incurred to date
Estimated costs to complete
Billings to date (non-refundable)
Collections to date
(a)
2023
2024
$448,000 $924,000
672,000
336,000 1,008,000
907,200
302.400
308,000
0000
2025
$1,198,400
0
1,792,000
1,596,000
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
nont
ROOF
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT