Brady Construction Company contracted to build an apartment complex for a price of $6,100,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 Situation 1 2 3 4 5 6 $ 1,610 1,610 1,610 610 610 610 2025 $ 2,460 1,230 2,460 3,110 3,110 3,110 $ 1,230 2,840 2,480 1,220 2,070 2,900 2024 Estimated Costs to Complete (As of the End of the Year) 2025 2024 2026 $ 3,690 3,690 3,690 4,270 4,270 5,655 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. $ 1,230 2,840 2,380 930 Revenue Recognized Over Time 2025 2026 2,380 2,690 Gross Profit (Loss) Recognized Revenue Recognized Upon Completion 2024 2026 2025

Brady Construction Company contracted to build an apartment complex for a price of $6,100,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 Situation 1 2 3 4 5 6 $ 1,610 1,610 1,610 610 610 610 2025 $ 2,460 1,230 2,460 3,110 3,110 3,110 $ 1,230 2,840 2,480 1,220 2,070 2,900 2024 Estimated Costs to Complete (As of the End of the Year) 2025 2024 2026 $ 3,690 3,690 3,690 4,270 4,270 5,655 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. $ 1,230 2,840 2,380 930 Revenue Recognized Over Time 2025 2026 2,380 2,690 Gross Profit (Loss) Recognized Revenue Recognized Upon Completion 2024 2026 2025

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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