Kiner, Inc. began work in 20x4 on a contract for $8,400,000. Other data are as follows: 20x4 20x5 Costs incurred to date $3,600,000 $5,600,000 Estimated costs to complete 2,400,000 — Billings during the year 2,800,000 8,400,000 Collections to year 2,000,000 7,200,000 1. If kiner uses the cost recovery method (point in time), the gross profit to be recognized in 20x5 is? 2. If Kiner uses the percentage-of-completion (over time) method, the gross profit to be recognized in 20x4 is
Kiner, Inc. began work in 20x4 on a contract for $8,400,000. Other data are as follows:
20x4 20x5
Costs incurred to date $3,600,000 $5,600,000
Estimated costs to complete 2,400,000 —
Billings during the year 2,800,000 8,400,000
Collections to year 2,000,000 7,200,000
1. If kiner uses the cost recovery method (point in time), the gross profit to be recognized in 20x5 is?
2. If Kiner uses the percentage-of-completion (over time) method, the gross profit to be recognized in 20x4 is?
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