Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $138,400. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 Billings (and cash collections) each year were as follows: 20X5 20X6 20X7 $2,682,000 $4,470,000 $1,788,000 20X5 20X6 20X7 Total $2,284,500 $4,867,000 $3,724,500 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit $ 0 $ 0

Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $138,400. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 Billings (and cash collections) each year were as follows: 20X5 20X6 20X7 $2,682,000 $4,470,000 $1,788,000 20X5 20X6 20X7 Total $2,284,500 $4,867,000 $3,724,500 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit $ 0 $ 0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 58P

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