Wildhorse Construction Inc. which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.5 million beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2025. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date (non-refundable) Cash collected to date 2023 2024 2025 $645,000 $1,542,000 $2,050,000 1,505,000 1.028,000 727,000 545,000 2,000,000 1,853,000 2,500,000 2,500,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
icon
Related questions
Question

Please do not give solution in image format thanku 

Wildhorse Construction Inc. which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.5 million
beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by
June 2025. The following data pertain to the construction period.
Costs to date
Estimated costs to complete
Progress billings to date (non-refundable)
Cash collected to date
2023
2024
2025
$645,000 $1,542,000 $2,050,000
1,505,000
1.028,000
727,000
545.000
2,000,000 2,500,000
2,500,000
1,853,000
Transcribed Image Text:Wildhorse Construction Inc. which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.5 million beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2025. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date (non-refundable) Cash collected to date 2023 2024 2025 $645,000 $1,542,000 $2,050,000 1,505,000 1.028,000 727,000 545.000 2,000,000 2,500,000 2,500,000 1,853,000
(b)
Calculate the amount of revenue to be recognized in 2023 and 2024.
Revenue to be recognized
S
2023
S
2024
Transcribed Image Text:(b) Calculate the amount of revenue to be recognized in 2023 and 2024. Revenue to be recognized S 2023 S 2024
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L