Wildhorse Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.5 million beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2025. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date (non-refundable) Cash collected to date (a) 2023 2024 $645,000 $1,496,250 498.750 727,000 2,000,000 545.000 1.853,000 1.505.000 2025 $2,050,000 0 2.500.000 2.500,000 Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45) Round answers to 0 decimal places, eg. 5,275)

Wildhorse Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.5 million beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2025. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date (non-refundable) Cash collected to date (a) 2023 2024 $645,000 $1,496,250 498.750 727,000 2,000,000 545.000 1.853,000 1.505.000 2025 $2,050,000 0 2.500.000 2.500,000 Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45) Round answers to 0 decimal places, eg. 5,275)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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