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shutvik
1 month ago
5

Conrad Construction Corp. has a $20 million contract to construct a building. The company estimates gross profit of $4 million.

During the current year, the company incurred $2 million of costs on the contract. Under the percentage-of-completion method, how much will Conrad Construction Corp. report as revenue in the current year?
Business
1 answer:
stepan [3K]1 month ago
4 0

Answer:

$2.5 millones

Explanation:

La construcción de Conrad ha estimado sus costos totales en $16 millones y un beneficio bruto de $4 millones (25% de los costos incurridos).

Si la empresa ha tenido costos de $2 millones durante este año, puede prever su beneficio bruto en $500,000.

Por lo tanto, los ingresos totales que debe informar para el año son $2.5 millones (= $2 millones + $0.5 millones)

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