What amount of gross profit would be recognized


Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant:

  • Total Construction Fixed Price $7,000,000
  • Construction Start Date March 3, 2012
  • Construction Complete Date December 4, 2013

As of Dec 31... 2012 2013

  • Actual cost incurred $2,700,000 $3,050,000
  • Estimated remaining costs $2,700,000 $-
  • Billed to customer $2,400,000 $5,600,000
  • Received from customer $2,000,000 $4,800,000

Assuming Platypus Building Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?

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Accounting Basics: What amount of gross profit would be recognized
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