Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the approval of the building permits, the company operated a parking lot on the land. This parking lot had revenues, net of costs, of $130,000. Construction will take place over an 18-month period. Total construction costs were as follows: Material Labour Incremental overhead General overhead Interest costs on general loan Cost of building permits $ 640,000 1,100,000 240,000 100,000 200,000 40,000
Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the approval of the building permits, the company operated a parking lot on the land. This parking lot had revenues, net of costs, of $130,000. Construction will take place over an 18-month period. Total construction costs were as follows: Material Labour Incremental overhead General overhead Interest costs on general loan Cost of building permits $ 640,000 1,100,000 240,000 100,000 200,000 40,000
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 18RE
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