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Business, 15.10.2019 01:00 tamikeen9301
Red builders agrees to construct a new building for blue co. for a total contract price of $6,000,000. the estimated construction costs at inception was $4,000,000. the construction project was completed after two years. below are the actual costs for years 1 and 2: descriptioncumulative year 1year 2cost incurred to date1,200,0002,500,000estimated additional costs to complete3,600,0002,100,000billings1 ,050,0002,300,000cash collections1,000,0001,900,000 red has determined that this contract qualifies for revenue recognition over time (as opposed to upon completion). as a result, red builders should have recognized profit at the end of year 1 in the amount of:
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Red builders agrees to construct a new building for blue co. for a total contract price of $6,000,00...
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