On April 1, 2025, Ivanhoe Inc. entered into a cost plus fixed fee contract to construct an electric generator for Metlock Corporation. At the contract date, Ivanhoe estimated that it would take 2 years to complete the project at a cost of $2,200,000. The fixed fee stipulated in the contract is $443,000. Ivanhoe appropriately accounts for this contract under the percentage-of-completion method. During 2025, Ivanhoe incurred costs of $946,000 related to the project. The estimated cost at December 31, 2025, to complete the contract is $1,254,000. Metlock was billed $555,000 under the contract. Prepare a schedule to compute the amount of gross profit to be recognized by Ivanhoe under the contract for the year ended December 31, 2025. (If an amount reduces the account balance then enter with negative sign., e.g. -45 or parentheses e.g. (45).) IVANHOE INC. Computation of Gross Profit to be Recognized on Uncompleted Contract $ > %
On April 1, 2025, Ivanhoe Inc. entered into a cost plus fixed fee contract to construct an electric generator for Metlock Corporation. At the contract date, Ivanhoe estimated that it would take 2 years to complete the project at a cost of $2,200,000. The fixed fee stipulated in the contract is $443,000. Ivanhoe appropriately accounts for this contract under the percentage-of-completion method. During 2025, Ivanhoe incurred costs of $946,000 related to the project. The estimated cost at December 31, 2025, to complete the contract is $1,254,000. Metlock was billed $555,000 under the contract. Prepare a schedule to compute the amount of gross profit to be recognized by Ivanhoe under the contract for the year ended December 31, 2025. (If an amount reduces the account balance then enter with negative sign., e.g. -45 or parentheses e.g. (45).) IVANHOE INC. Computation of Gross Profit to be Recognized on Uncompleted Contract $ > %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be in table format or i will give down vote
Transcribed Image Text:On April 1, 2025, Ivanhoe Inc. entered into a cost plus fixed fee contract to construct an electric generator for Metlock Corporation. At
the contract date, Ivanhoe estimated that it would take 2 years to complete the project at a cost of $2,200,000. The fixed fee
stipulated in the contract is $443,000. Ivanhoe appropriately accounts for this contract under the percentage-of-completion method.
During 2025, Ivanhoe incurred costs of $946,000 related to the project. The estimated cost at December 31, 2025, to complete the
contract is $1,254,000. Metlock was billed $555,000 under the contract.
Prepare a schedule to compute the amount of gross profit to be recognized by Ivanhoe under the contract for the year ended
December 31, 2025. (If an amount reduces the account balance then enter with negative sign., e.g. -45 or parentheses e.g. (45).)
IVANHOE INC.
Computation of Gross Profit to be
Recognized on Uncompleted Contract
$
>
%
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