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Business, 25.02.2020 22:19 2016gbryant

A construction company entered into a fixed-price contract to build an office building for $48 million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million.

How much revenue will appear in the companys income statement in the first year using the percentage-of-completion method?How much gross profit or loss will the company recognize in the first year using the percentage-of-completion method?

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