2. At December 31, 2017, Carter would report gross amount of Construction in Process as a. $600,000. b. $1,200,000. c. $1,800,000. d. $3,600,000.

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 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...
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Answer is $1,800,000. Please explain the reasoning and calculations
2. At December 31, 2017, Carter would report gross amount of Construction in Process as
a. $600,000.
b. $1,200,000.
c. $1,800,000.
d. $3,600,000.
Transcribed Image Text:2. At December 31, 2017, Carter would report gross amount of Construction in Process as a. $600,000. b. $1,200,000. c. $1,800,000. d. $3,600,000.
Ramos, Inc. began work in 2017 on contract #3814. The contract price is $7,200,000. The
contract is expected to be completed in 2018. Other details follow:
2017
$1,200,000
3,600,000
1,350,000
900,000
2018
Costs incurred during the year
Estimated costs to complete, as of December 31
Billings during the
Collections during the
$3,675,000
year
5,400,000
5,850,000
year
Assume that Ramos uses the percentage-of-completion method of accounting and has fiscal
years ending on December 31.
Transcribed Image Text:Ramos, Inc. began work in 2017 on contract #3814. The contract price is $7,200,000. The contract is expected to be completed in 2018. Other details follow: 2017 $1,200,000 3,600,000 1,350,000 900,000 2018 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the Collections during the $3,675,000 year 5,400,000 5,850,000 year Assume that Ramos uses the percentage-of-completion method of accounting and has fiscal years ending on December 31.
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