On January 1, Year 1, Crawford Construction Company enters into a contract with a customer to build an office complex for a fixed price of $36 million. Estimated costs to complete the project are $24 million. At the end of Year 1, costs incurred to date amount to $18 million. Using the cost-to-cost method, how much revenue should be recognized in Year 1? $24 million $27 million $36 million $0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, Year 1, Crawford Construction Company enters into a contract with a customer to build an office complex for a fixed price of $36 million. Estimated costs to complete the project are $24 million. At the end of Year 1, costs incurred to date amount to $18 million. Using the cost-to-cost method, how much revenue should be recognized in Year 1?

  1. $24 million
  2. $27 million
  3. $36 million
  4. $0
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