Sarnet Corporation enters into a 4-year construction contract worth $100 million with Gold company on January 1, 2022. At the end of 2022, construction costs totaled $20 million and Garnet estimates $60 million of construction costs remain. If Garnet uses the percent of completion method to determine revenues, how much revenue will Garnet recognize in 2022 related to the construction contract?
Sarnet Corporation enters into a 4-year construction contract worth $100 million with Gold company on January 1, 2022. At the end of 2022, construction costs totaled $20 million and Garnet estimates $60 million of construction costs remain. If Garnet uses the percent of completion method to determine revenues, how much revenue will Garnet recognize in 2022 related to the construction contract?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Garnet Corporation enters into a 4-year construction contract worth $100 million with Gold
company on January 1, 2022. At the end of 2022, construction costs totaled $20 million and
Garnet estimates $60 million of construction costs remain. If Garnet uses the percent of
completion method to determine revenues, how much revenue will Garnet recognize in 2022
related to the construction contract?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61d068a8-a79e-4cef-8442-ea778239765f%2Fc9232c77-add9-47ea-afdd-4f1e4702889a%2F1li9qdv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Garnet Corporation enters into a 4-year construction contract worth $100 million with Gold
company on January 1, 2022. At the end of 2022, construction costs totaled $20 million and
Garnet estimates $60 million of construction costs remain. If Garnet uses the percent of
completion method to determine revenues, how much revenue will Garnet recognize in 2022
related to the construction contract?
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