During 2007, Frank Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred in current year $1,080,000 $1,220,000 Estimated remaining costs 1,080,000 — Billed to customer 960,000 1,840,000 Received from customer 800,000 1,920,000 Under the completed-contract method, what amount should Frank recognize as gross profit for 2008? Group of answer choices 500,000 $250,000 $180,000 $380,000
During 2007, Frank Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows:
2007 2008
Actual costs incurred in current year $1,080,000 $1,220,000
Estimated remaining costs 1,080,000 —
Billed to customer 960,000 1,840,000
Received from customer 800,000 1,920,000
Under the completed-contract method, what amount should Frank recognize as gross profit for 2008?
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