Schorria Constructions Ltd (SCL) builds large-scale government infrastructure projects. SCL recognises revenue by applying the percentage of completion method. A current project commenced in 2019 and is expected to be completed in 2025. The contract price is $50 million and SCL expects the project's total cost to be $27 million. Calculate, to the nearest whole dollar, the amount SCL would recognise as revenue for the year ended 30 June 2021 if the costs incurred in the period were $8 million.

Schorria Constructions Ltd (SCL) builds large-scale government infrastructure projects. SCL recognises revenue by applying the percentage of completion method. A current project commenced in 2019 and is expected to be completed in 2025. The contract price is $50 million and SCL expects the project's total cost to be $27 million. Calculate, to the nearest whole dollar, the amount SCL would recognise as revenue for the year ended 30 June 2021 if the costs incurred in the period were $8 million.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 26CE

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