Question:
On February 1, 2010, Marsh Contractors agreed to construct a building at a contract price of $6,000,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2012. Information relating to the costs and billings for this contract is as follows: 2010 2011 2012 Total costs incurred to date $1,000,000 $2,760,000 $4,600,000 Estimated costs to complete 3,000,000 1,840,000 -0- Customer billings to date 2,200,000 4,000,000 5,600,000 Collections to date 2,000,000 3,500,000 5,500,000