Business, 29.05.2020 06:59 KitKat22Rose9

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:

Description Cumulative
Year 1 Year 2
Cost incurred to date 1,200,000 2,500,000
Estimated additional costs to complete 3,600,000 2,100,000
Billings 1,050,000 2,300,000
Cash Collections 1,000,000 1,900,000

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:

a. $300,000
b. $600,000
c. $1,050,000
d. $1,000,000

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:30

The framers of the us constitution created a system of government that established branches of government set forth the powers of such a branches and placed limits on those powers what are the benefits of such a system? are there any problems associated with such a system?

Answers: 3

Answer

Business, 22.06.2019 01:20

For a multistate lottery, the following probability distribution represents the cash prizes of the lottery with their corresponding probabilities. complete parts (a) through (c) below. x (cash prize, $) p(x) grand prizegrand prize 0.000000008860.00000000886 200,000 0.000000390.00000039 10,000 0.0000016950.000001695 100 0.0001582930.000158293 7 0.0039114060.003911406 4 0.0080465690.008046569 3 0.012865710.01286571 0 0.975015928140.97501592814 (a) if the grand prize is $13 comma 000 comma 00013,000,000, find and interpret the expected cash prize. if a ticket costs $1, what is your expected profit from one ticket? the expected cash prize is $nothing.

Answers: 3

Answer

Business, 22.06.2019 02:40

Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?

Answers: 3

Answer

Business, 22.06.2019 04:30

4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Answers: 1

Answer

You know the right answer?

Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,00...