WCM Builders enters into a contract to build a shopping mall in 2019 for $6,000,000. Completion of the mall is expected to take 27 months and cost WCM $3,600,000. Upon signing the contract, WCM receives $600,000. During 2019, WCM incurs costs of $1,200,000 and receives a $1,000,000 progress payment. WCM’s forewoman estimates that the job is 50% complete at the end of 2019. How much income must WCM recognize in 2019 from the work done on the mall? Do not round intermediate computations. WCM will recognize $ of gross income from the contract in 2019
WCM Builders enters into a contract to build a shopping mall in 2019 for $6,000,000. Completion of the mall is expected to take 27 months and cost WCM $3,600,000. Upon signing the contract, WCM receives $600,000. During 2019, WCM incurs costs of $1,200,000 and receives a $1,000,000 progress payment. WCM’s forewoman estimates that the job is 50% complete at the end of 2019. How much income must WCM recognize in 2019 from the work done on the mall? Do not round intermediate computations. WCM will recognize $ of gross income from the contract in 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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WCM Builders enters into a contract to build a shopping mall in 2019 for $6,000,000. Completion of the mall is expected to take 27 months and cost WCM $3,600,000. Upon signing the contract, WCM receives $600,000. During 2019, WCM incurs costs of $1,200,000 and receives a $1,000,000 progress payment. WCM’s forewoman estimates that the job is 50% complete at the end of 2019. How much income must WCM recognize in 2019 from the work done on the mall?
Do not round intermediate computations.
WCM will recognize $ of gross income from the contract in 2019.
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