Question

Using Percentage-of-Completion and Completed Contract Methods

Halsey Building Company signed a contract to build an office building for $60,000,000. The scheduled construction costs follow.

Year	Cost
2016	$12,000,000
2017	18,000,000
2018	10,000,000
Total	$40,000,000

The building is completed in 2018.
For each year, compute the revenue, expense, and gross profit reported for this construction project using each of the following methods.

a. Percentage-of-completion method

	2016	2017	2018
Revenue	$Answer	$Answer	$Answer
Expense	$Answer	$Answer	$Answer
Gross Profit	$Answer	$Answer	$Answer

b. Completed contract method

	2016	2017	2018
Revenue	$Answer	$Answer	$Answer
Expense	$Answer	$Answer	$Answer
Gross Profit	$Answer	$Answer	$Answer

Answer 1