Haft Construction Company has consistently applied the percentage-of-completion method. On January 10, 2014, Haft began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract: $ 300,000 Gross profit recognized at 12/31/14 Costs incurred 1/01/14 through 12/31/15 Estimated cost to complete at 12/31/15 1,800,000 600,000 In its income statement for the year ended December 31, 2015, what amount of gross profit should Haft report?
Haft Construction Company has consistently applied the percentage-of-completion method. On January 10, 2014, Haft began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract: $ 300,000 Gross profit recognized at 12/31/14 Costs incurred 1/01/14 through 12/31/15 Estimated cost to complete at 12/31/15 1,800,000 600,000 In its income statement for the year ended December 31, 2015, what amount of gross profit should Haft report?
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 26E
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Transcribed Image Text:Haft Construction Company has consistently applied the percentage-of-completion method. On January 10, 2014, Haft began work on a $3,000,000
construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract:
$ 300,000
Gross profit recognized at 12/31/14
Costs incurred 1/01/14 through 12/31/15
Estimated cost to complete at 12/31/15
1,800,000
600,000
In its income statement for the year ended December 31, 2015, what amount of gross profit should Haft report?
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