During 2025, Sunland Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $393,900 616,100 299,000 268,000 2026 $760,380 341,620 905,000 818,000 2027 $1,059,000 -0- 1,610,000 1,421,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During 2025, Sunland Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The
following information is available.
Costs incurred to date
Estimated costs to complete
Billings to date
Collections to date
(a)
2025
$393,900
616,100
299,000
268,000
2026
$760,380
341,620
905,000
818,000
2027
$1,059,000
-0-
1,610,000
1,421,000
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
Transcribed Image Text:During 2025, Sunland Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $393,900 616,100 299,000 268,000 2026 $760,380 341,620 905,000 818,000 2027 $1,059,000 -0- 1,610,000 1,421,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
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