Problem-
Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows:
|
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2012
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2013
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|
Costs incurred to date
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$5,400,000
|
$8,400,000
|
|
Estimated costs to complete
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3,600,000
|
|
|
|
|
|
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Billings to date
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4,200,000
|
12,600,000
|
|
Collections to date
|
3,000,000
|
10,800,000
|
Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows:
If Kiner uses the completed-contract method, the gross profit to be recognized in 2013 is
a. $2,040,000.
b. $4,200,000.
c. $2,100,000.
d. $8,400,000.
Additional information-
This problem related to Basics Accounting and calculation of profit using completed contract method.