On December 1, 2020, Shyam Construction Co. entered into a contract with a customer for the construction of a building. The contract prices are $44,00,000, which is to be billed to the customers periodically based on Shyam's progress on the construction. The estimated total contract cost is $28,00,000. The actual costs incurred in 2020 amounts to $12,00,000. Requirement: The revenue to be recognized in 2020
On December 1, 2020, Shyam Construction Co. entered into a contract with a customer for the construction of a building. The contract prices are $44,00,000, which is to be billed to the customers periodically based on Shyam's progress on the construction. The estimated total contract cost is $28,00,000. The actual costs incurred in 2020 amounts to $12,00,000. Requirement: The revenue to be recognized in 2020
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 9MC
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![On December 1, 2020, Shyam Construction Co. entered into a contract with a customer for the
construction of a building. The contract prices are $44,00,000, which is to be billed to the customers
periodically based on Shyam's progress on the construction. The estimated total contract cost is
$28,00,000. The actual costs incurred in 2020 amounts to $12,00,000.
Requirement: The revenue to be recognized in 2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d9a6e9b-0fd8-4d48-a402-7b8c695c3e5d%2F016214b0-9346-425f-920b-7d39cd7a0332%2Fndarc2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 1, 2020, Shyam Construction Co. entered into a contract with a customer for the
construction of a building. The contract prices are $44,00,000, which is to be billed to the customers
periodically based on Shyam's progress on the construction. The estimated total contract cost is
$28,00,000. The actual costs incurred in 2020 amounts to $12,00,000.
Requirement: The revenue to be recognized in 2020
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