Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional$82 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.Suppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated):Multiple ChoiceRecognized $13.2 million gross profit on the project in 2019.Recognized $10.2 million loss on the project in 2019.Recognized $3.00 million loss on the project in 2019.Recognized $10.2 million gross profit on the project in 2019. For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:Pretax accounting incomePermanent difference$380, eee(14,5ee)285,500(20, 400)Temporary difference-depreciationTaxable income$265, 100Tringali's tax rate is 34%. Assume that no estimated taxes have been paid.What should Tringali report as its deferred income tax liability as of the end of its first year of operations?Multiple Choice$20.400$11,86.$6,936$34,90.O O O

Answer 1: Information Provided: Contract price = $160 million 2018 costs = 36 million Estimates…

Answered: uppose that, in 2019, Indiana incurred…

uppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated):

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 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
Indiana Co. began a construction project in 2018 with a contract price of $162 million to be received when the project is completed in 2020. During 2018, Indiana incurred $33 million of costs and estimates an additional $85 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2019, Indiana incurred additional costs of $64 million and estimated an additional $51 million in costs to complete the project. Indiana (Do not round your percentage calculated): Multiple Choice Recognized $3.00 million loss on the project in 2019. Recognized $6.13 million gross profit on the project in 2019. Recognized $3.13 million loss on the project in 2019. Recognized $3.13 million gross profit on the project in 2019.
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Indiana Company began a construction project in 2024 with a contract price of $165 million to be received when the project is completed in 2026. During 2024, Indiana incurred $37 million of costs and estimates an additional 87 million of costs to complete the project Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed In 2025Indiana incurred additional costs of $57 million and estimated an additional $39 million in costs to complete the projectIndiana
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