How much gross profit should be reported for 2021?

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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How much gross profit should be reported for 2021?
Dalton Construction Co. contracted to build a bridge for P5,000,000. Construction began in
2020 and was completed in 2021. Data relating to the construction are:
2020
2021
Costs incurred
P1,650,000
P1,375,000
Estimated costs to complete
1,350,000
Dalton uses the percentage-of-completion method. How much gross profit should be reported
for 2021?
Transcribed Image Text:Dalton Construction Co. contracted to build a bridge for P5,000,000. Construction began in 2020 and was completed in 2021. Data relating to the construction are: 2020 2021 Costs incurred P1,650,000 P1,375,000 Estimated costs to complete 1,350,000 Dalton uses the percentage-of-completion method. How much gross profit should be reported for 2021?
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