Indiana Co. began a construction project in 2021 with a contract price of $160 million to be received when the project is completed in 2023. During 2021, Indiana incurred $37 million of costs and estimates an additional $80 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2022, Indiana incurred additional costs of $65 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated):

Indiana Co. began a construction project in 2021 with a contract price of $160 million to be received when the project is completed in 2023. During 2021, Indiana incurred $37 million of costs and estimates an additional $80 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2022, Indiana incurred additional costs of $65 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated):

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 6P

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