353-Quiz on Revenue Recognition

c. The bridge project must that is estimated to require 2 years to complete is about to go underway. The bridge is projected to cost $48 million. It will need to begin construction in 18 months. Rights-of-way acquisition, surveying, and permitting have already been completed and paid for by the program. There will be 2 additional project phases: 1) planning & design, 2) construction. Each will require payment at the end of the phase. The projected cost of the 1st phase of the project is $5.5 million. The 1st phase is expected to need the entire 18 months prior to the start of construction and must be completed before construction can begin. The 2nd phase is projected to cost the remaining $42.5 million. Its construction is also expected to be completed at the end of the 2-year period following planning & design. There will need to be a payout of 30% of the cost of construction at the end of the 1st year of construction project. The remaining 70% will be paid at the completion…

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K A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $27,000. People will be charged a toll of $0.22 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $9,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $80,000 every five years and regular annual maintenance costs of $17,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10per year. Choose the correct answer below. .... A. The maximum acceptable cost of the new bridge is $1,668,576.…

QUESTION 1 A new production system for a factory is to be purchased and installed for $115,042. This systom will save approximately 300,000 kWh of electric power each year for a6- year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system wil be $9,196 at year 6. Using the PW method to analyzes if this investment is economically justified A- calculate the PW of the above investment and insert the result below

R2

Question 1. a) A Construction Company has just purchased a fleet of five truck to be used for delivery in a particular city. Initial cost was $3000 per truck and the expected life and salvage value is 12 years and $700 respectively. The combine insurance, maintenance, gas and lubrication cost are expected to be $1000 for the first year and to increase by $100 per year thereafter, while delivery service will bring an extra $3000 (revenue) in every 2 years for the company. If the interest is 12% per year find the total cost of this investment. b) Ten years ago today Thomas made the first annual deposit of $ 2000 into a fund paying 3% interest compounded semi-annually. Two years ago the interest rate was increased to 4% on all funds compounded annually. Find the current worth of Thomas deposits, the last of which was made today.

Please provide answer general accounting

Question D

A2

19 A highwvay construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $18 million, with annual upkeep estimated at S150,000 per. Additional income from tourists of $900,000 per year is estimated If the road is expected to have a useful commercial life of 20 years, use one spreadsheet to determine if the highway should be constructed at an interest rate of 696 per year by applying (a) the B-C method, (b) the B/C method, and (c) the modified B C method. W VERON SAN FRANCISCO

6 points American Construction Company has entered into a contract with American University in Cairo beginning January 1, 2017 to construct Digital Library Building. It has been estimated that the costs of the building to be $2,100,000 and the contract price will be $3,265,000. It will take 3 years to construct the building. The company uses cost recovery method. If the following data pertain to the building during the construction period. Save Answer 2017 $945,000 1,155,000 900,000 800,000 2018 $1,575,000 525,000 1,970,000 1,750,000 2019 $2,135,000 Costs to date Estimated costs to complete -0- Progress billings to date Cash collected to date 3,265,000 3,265,000 Requirements: Required 1: Compute the gross profit of loss recognized each year. Required 2: The balance of construction in process in 2017 and 2018 will be: Required 3: Assume the same data for the digital library contract except that the estimated cost in 2018 was $1.050.000 instead of $525,000. A. Compute the gross profit or…

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Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period.   2020 2021 2022 Costs to date $270,000 $450,000 $610,000 Estimated costs to complete   330,000   150,000 –0– Progress billings to date   270,000   550,000   900,000 Cash collected to date   240,000   500,000   900,000 Instructions a.    Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. b.    Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.

Question 1 Aguilera Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:     Year Unit Sales 1 8300 2 9200 3 10400 4 9800 5 8400   Production of the implants will require GH¢ 150,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales for that year. In the final year of the project, net working capital will decline to zero as the project is wound down. In other words, the investment in working capital is to be completely recovered by the end of the project’s life. Total fixed costs are GH¢ 240,000 per year, variable production costs are GH¢ 190 per unit, and the units are priced at GH¢ 345 each. The equipment needed to begin production has an installed cost of GH¢ 2,300,000. Because the implants are intended for professional singers, this equipment depreciated using the straight-line basis. In five years, this equipment…

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Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $609,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $266,640 $412,080 $617,000 Estimated costs to complete 339,360 193,9200 –0– Progress billings to date 270,000 545,000 896,000 Cash collected to date 240,000 495,000 896,000 A/ Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross profit recognized in 2022: B/ Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross…

A3 9b You are considering a project that will supply an automobile production facility with 35,000 tonnes of machine screws annually for five years. To get the project started, you will need an initial investment of $1,500,000 in threading equipment. The project will last for five years. The accounting department estimates that annual fixed costs will be $300,000 and that variable costs should be $200 per tonne. The CCA rate for threading equipment is 20%. Accounting estimates a salvage value of $500,000 after costs of dismantling. The marketing department estimates that the auto makers will accept the contract at a selling price of $250 per tonne. The engineering department estimates you will need an initial net working capital investment of $450,000. You require a 15% return and face a marginal tax rate of 38% on this project. b.       Suppose you believe that the accounting department’s initial cost and salvage projections are accurate only to within ±15%; the marketing department’s…

please answer letters only

Question 7 A construction company is deciding if they should make a new building bronze, silver, or gold LEED-certified, or not at all. Regardless of the level of certification, this new building will generate extra annual revenues of $40,000 starting at the end of the first year due to planned business operation. In terms of operational cost, each option offers different levels of annual energy savings (can be taken as annual incomes), but also different operation and maintenance costs. Please also note that a building with no certification will have no energy savings, but full energy costs. Further, the government offers different tax credits depending on the level of environmental impact. Please note that all annual costs and savings begin at the end of year 3 and extend until the end of the operation life. The buildings are intended to operate for 20 years, and the company has a minimum attractive rate of return (MARR) of 5%. The following data is available for each option: Annual…