par any com During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Darwin sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date 2023 Gross profit/(loss) Estimated costs to complete 3,150,000 $600,000 $2,100,000 $4,100,000 2024 2023 2,100,000 2025 Calculate the amount of gross profit or loss that should be recognized each year under the zero-profit method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) 72000 -0- 2024 -72000 2025 100000
par any com During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Darwin sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date 2023 Gross profit/(loss) Estimated costs to complete 3,150,000 $600,000 $2,100,000 $4,100,000 2024 2023 2,100,000 2025 Calculate the amount of gross profit or loss that should be recognized each year under the zero-profit method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) 72000 -0- 2024 -72000 2025 100000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Your answer is partially correct.
During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin ran into severe technical
difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the
contract, Darwin sends billings as revenues are earned. Billings are non-refundable. The following information is available:
Costs incurred to date
2023
Estimated costs to complete 3,150,000
Gross profit/(loss)
2024
$600,000 $2,100,000 $4,100,000
2023
2,100,000
2025
Calculate the amount of gross profit or loss that should be recognized each year under the zero-profit method. (Enter negative amounts
using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.)
72000 $
-0-
2024
-72000
2025
100000
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