In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed In 2026. Information related to the contract is as follows: 2024 $ 3,096,000 5,504,000 2,600,000 2,400,000 2025 $ 3,870,000 1,634,000 4,366,000 4,200,000 2026 $ 1,797,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. e 3,034,000 3,400,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed In 2026. Information related to the contract is as follows: 2024 $ 3,096,000 5,504,000 2,600,000 2,400,000 2025 $ 3,870,000 1,634,000 4,366,000 4,200,000 2026 $ 1,797,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. e 3,034,000 3,400,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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![In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2026. Information related to the contract is as follows:
2024
$ 3,096,000
5,504,000
2,600,000
2,400,000
2025
Cost incurred during the year
Estimated costs to complete as of year-end
$ 3,870,000
1,634,000
4,366,000
Billings during the year
3,034,000
Cash collections during the year
4,200,000
3,400,000
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2026
$ 1,797,400
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03b9cd13-28be-483b-8e1d-7f049a1a94cd%2F55667e7e-9bca-4e59-92eb-a87a2ffcbd46%2Ffx697ir_processed.png&w=3840&q=75)
Transcribed Image Text:In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2026. Information related to the contract is as follows:
2024
$ 3,096,000
5,504,000
2,600,000
2,400,000
2025
Cost incurred during the year
Estimated costs to complete as of year-end
$ 3,870,000
1,634,000
4,366,000
Billings during the year
3,034,000
Cash collections during the year
4,200,000
3,400,000
Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2026
$ 1,797,400
0
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