Textbook Problem

Wells Corp. appropriately determined that Construction Project A was a single performance obligation that is satisfied over time. For this project, Wells had previously recognized revenue of $230,000 out of a total of $800,000 for the project. During the current year, Wells accumulated the following information about this project:

• construction costs incurred for the year, $92,000
• construction costs incurred to date (including this year’s costs), $200,000
• estimated costs to complete, $300,000

Based on the previous information, prepare a schedule to determine the amount of loss that Wells should recognize for the current year.