M. 00 00 at of. Use the following information for the next two questions: Co. appropriately on a uses the cost-to-cost method in measuring construction contract with a customer. Information on this contract, which was completed in 20x3, is shown below: Bass its progress Transaction price Profit each year Costs incurred each year (AICPA-Adapted) 20x1 20,000,000 400,000 3,600,000 20x2 20,000,000 1,400,000 ? 10. How much are the contract costs incurred in 20x2? a. 5,800,000 c. 6,600,000 b. 6,200,000 d. 10,200,000 a. 5,400,000 b. 6,800,000 20x3 20,000,000 (200,000) 8,200,000 How much are the estimated additional costs to complete as of December 31, 20x2? c. 7,200,000 Vies d. 8,600,000
M. 00 00 at of. Use the following information for the next two questions: Co. appropriately on a uses the cost-to-cost method in measuring construction contract with a customer. Information on this contract, which was completed in 20x3, is shown below: Bass its progress Transaction price Profit each year Costs incurred each year (AICPA-Adapted) 20x1 20,000,000 400,000 3,600,000 20x2 20,000,000 1,400,000 ? 10. How much are the contract costs incurred in 20x2? a. 5,800,000 c. 6,600,000 b. 6,200,000 d. 10,200,000 a. 5,400,000 b. 6,800,000 20x3 20,000,000 (200,000) 8,200,000 How much are the estimated additional costs to complete as of December 31, 20x2? c. 7,200,000 Vies d. 8,600,000
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 20E: Assume the same facts as in E17-19, except that Rix cannot directly observe the stand-alone selling...
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