Tony Corporation has a construction contract in progress as follows : Total contract price: $550 million Costs incurred to date: $225 million Estimated cost to completion: $340 million Payments invoiced & received: $290 million Question : Calculate the amount that can be recognized in the income statement and statement of financial position with assumes performance obligation is satisfied. Please use these items in answering the question: 1. Income Statement: Revenue, Cost of Sales, Gain/Loss. 2. Statement of Financial Position: Cost incurred to date, Recognized Gain/Loss, Receivable/Payable, Contract Asset/Liability.
Tony Corporation has a construction contract in progress as follows : Total contract price: $550 million Costs incurred to date: $225 million Estimated cost to completion: $340 million Payments invoiced & received: $290 million Question : Calculate the amount that can be recognized in the income statement and statement of financial position with assumes performance obligation is satisfied. Please use these items in answering the question: 1. Income Statement: Revenue, Cost of Sales, Gain/Loss. 2. Statement of Financial Position: Cost incurred to date, Recognized Gain/Loss, Receivable/Payable, Contract Asset/Liability.
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 26E
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Question
Tony Corporation has a construction contract in progress as follows :
Total contract price: $550 million
Costs incurred to date: $225 million
Estimated cost to completion: $340 million
Payments invoiced & received: $290 million
Question :
Calculate the amount that can be recognized in the income statement and statement of financial position with assumes performance obligation is satisfied.
Please use these items in answering the question:
1. Income Statement: Revenue, Cost of Sales, Gain/Loss.
2. Statement of Financial Position: Cost incurred to date, Recognized Gain/Loss, Receivable/Payable, Contract Asset/Liability.
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