The following info relates to Pell Company's construction jobswhich commenced during 2008.
|
Project1 |
Project2 |
| ContactPrice |
420,000 |
300,000 |
| Costs incurredduring the2008 |
240,000 |
280,000 |
| Estimated coststo complete |
120,000 |
40,000 |
| Billed tocustomers during 2008 |
150,000 |
270,000 |
| Received fromcustomers during 2008 |
90,000 |
250,000 |
1. If Pell used the completed contract method, what amount of grossprofit or loss would it report in its 2008 income statement?
2. If Pell used the percentage of completion method, what amount ofgross profit or loss would it report in its 2008 incomestatement?