In 2020, Crane Contractors began construction on an office building. The building was expected to cost $46,310,000 was expected to be completed in early 2022. The customer was to pay Crane $48,760,000 for the building. Crane was bercentage-of-completion accounting for the project, and at the end of 2020 had accumulated $11,577,500 in cost. C estimated that the costs to complete the construction were in line with the original expected total costs. During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramati costs in the construction industry. As a result, at the end of 2021, Crane estimated that the office building would cost in total. To the end of 2021, Crane had spent $38,828,400 on constructing the office building. Calculate the revenue to be recognized by Crane for the 2021 fıscal year. Revenue to be recognized 2$ $24,867,600
In 2020, Crane Contractors began construction on an office building. The building was expected to cost $46,310,000 was expected to be completed in early 2022. The customer was to pay Crane $48,760,000 for the building. Crane was bercentage-of-completion accounting for the project, and at the end of 2020 had accumulated $11,577,500 in cost. C estimated that the costs to complete the construction were in line with the original expected total costs. During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramati costs in the construction industry. As a result, at the end of 2021, Crane estimated that the office building would cost in total. To the end of 2021, Crane had spent $38,828,400 on constructing the office building. Calculate the revenue to be recognized by Crane for the 2021 fıscal year. Revenue to be recognized 2$ $24,867,600
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 41P
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