Question
In 2016 the ole construction corp began construction work under a 3 year contract. The contract...
In 2016 the ole construction corp began construction work under a 3 year contract. The contract price was $1,600,000. The Job was completed in 2018.
2016 2017 2018
Costs incurred to date 400000 935000 1070000
Estimated costs to complete 700000 165000 0
Billings to date 300000 900000 1600000
Collections to date 270000 810000 1525000
- Compute the amount of Gross Profit to be recognized for 2016 and 2017 assuming that ole is required to recognize revenue overtime.
- Compute the amount of gross profit to be recognized for 2016 ad 2017 assuming ole is required to recognize revenue at completion.
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