Ef 46. 5ssume Miami FiberOptics contracted to provide a customer with Internet infrastructure for $4,000,000. The projectegan in Year 1 and was completed in Year 2. Data relating to the contract are summarized below:ontract amountosts incurred during the yearstimated costs to complete as of 12/31illings during the yearash collections during the year5ercentage of completion7onstruction revenueBonstruction expense9 iross profit (loss)10$4,000,000Year 124 onstruction revenue5 onstruction expense26 iross profit (loss)27$800,000$2,400,000$850,000$500,000Compute the amount of revenue and gross profit or loss to be recognized in Year 1 and Year 2, assuming Miami FiberOpticsecognizes revenue over time according to percentage of completion.Year 1Year 2800,000Year 1$2,300,000$0$3,150,000$3,500,000Year 2100%2,300,0001Compute the amount of revenue and gross profit or loss to be recognized in Year 1 and Year 2, assuming this project does not2 ualify for revenue recognition over time.3Year 2Total3,100,000Total

A construction contract is a long-term contract that generally takes over a year to complete. The…

ssume Miami FiberOptics contracted to provide a customer with Internet infrastructure for $4,000,000. The project egan in Year 1 and was completed in Year 2. Data relating to the contract are summarized below: ontract amount osts incurred during the year stimated costs to complete as of 12/31 illings during the year ash collections during the year ercentage of completion Construction revenue Bonstruction expense iross profit (loss) $4,000,000 Year 1 4onstruction revenue 5 onstruction expense iross profit (los) $800,000 $2,400,000 $850,000 $500,000 + Compute the amount of revenue and gross profit or loss to be recognized in Year 1 and Year 2, assuming Miami FiberOptics ecognizes revenue over time according to percentage of completion. Year 1 800,000 Year 2 $2,300,000 $0 $3,150,000 $3,500,000 Year 1 Year 2 100% 2,300,000 O 1 Compute the amount of revenue and gross profit or loss to be recognized in Year 1 and Year 2, assuming this project does not 2 ualify for revenue recognition over time. 3 Year 2 Total 3,100,000 Total

ssume Miami FiberOptics contracted to provide a customer with Internet infrastructure for $4,000,000. The project egan in Year 1 and was completed in Year 2. Data relating to the contract are summarized below: ontract amount osts incurred during the year stimated costs to complete as of 12/31 illings during the year ash collections during the year ercentage of completion Construction revenue Bonstruction expense iross profit (loss) $4,000,000 Year 1 4onstruction revenue 5 onstruction expense iross profit (los) $800,000 $2,400,000 $850,000 $500,000 + Compute the amount of revenue and gross profit or loss to be recognized in Year 1 and Year 2, assuming Miami FiberOptics ecognizes revenue over time according to percentage of completion. Year 1 800,000 Year 2 $2,300,000 $0 $3,150,000 $3,500,000 Year 1 Year 2 100% 2,300,000 O 1 Compute the amount of revenue and gross profit or loss to be recognized in Year 1 and Year 2, assuming this project does not 2 ualify for revenue recognition over time. 3 Year 2 Total 3,100,000 Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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