Khodra Construction was contracted to construct an apartment complex for NDC. The contract calls for progress billings and payments of $620,000 each quarter. The total contract price is $7,440,000 and Khodra estimates total costs of $7,100,000. Further, Khodra estimates that the complex will take 3 years to complete. Construction began on March 1, 2021. At December 31, 2021, Khodra estimated that construction was 30% complete based on costs incurred. What total amount of Revenue from Long-Term Contracts was recognized for 2021 and what was the balance in the Accounts Receivable account assuming NDC had paid $1,800,000 thus far for 2021?

Khodra Construction was contracted to construct an apartment complex for NDC. The contract calls for progress billings and payments of $620,000 each quarter. The total contract price is $7,440,000 and Khodra estimates total costs of $7,100,000. Further, Khodra estimates that the complex will take 3 years to complete. Construction began on March 1, 2021. At December 31, 2021, Khodra estimated that construction was 30% complete based on costs incurred. What total amount of Revenue from Long-Term Contracts was recognized for 2021 and what was the balance in the Accounts Receivable account assuming NDC had paid $1,800,000 thus far for 2021?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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