Question

2. Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2021 and was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation о» от дома Costs Incurred During Year 2021 2022 2023 1,500 2,100 900 1,500 900 2,400 1,500 2,100 1,600 500 3,000 1,000 500 3,000 1,300 500 3,000 1,800 Estimated Costs to Complete (As of the End of the Year) 2021 2022 2023 3,000 900 3,000 2,400 3,000 1,500 3,500 3,500 1,500 4,600 1,700 875 Required: Complete the following table. (Enter answers in dollars. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.)

Answer 1

Answer to Q#2 (First question in the list): Situation Gross Profit (Loss) Recognized Revenue recognized over time 2021 2022 2023 $166,667 $233,333 $100,000 $166,667 ($66,667) $100,000 $166,667 ($266,667) ($100,000) $125,000 $375,000 $125,000 ($125,000) $200,000 ($100,000) ($100,000) ($100,000) $0 $0 Revenue recognized upon completion 2021 2022 2023 $0 $0 $500,000 $200,000 $0 ($100,000) ($100,000) $500,000 $0 $200,000 ($100,000) ($100,000) ($100,000) $0 $0 SOP $0 Workings for:

Situation-1: (ul) (ul) (1) (Based on Percentage-of-Completion) Cost Incurred Situation Total Costs incurred (x) = (ul)+(u2)+(u3) Contract Price 2021 2022 2023 2021 $5,000,000 2022 $5,000,000 2023 $5,000,000 --> (a) Contract Price $4,500,000 Actual costs to date Estimated costs to complete Total estimated costs $1,500,000 $3,000,000 $4,500,000 $1,500,000 $1,500,000 $1,500,000 $500,000 $500,000 $500,000 $3,600,000 $900,000 $4,500,000 (x) - (v) Revnue recognized upon completion $500,000 $200,000 $200,000 $500,000 $200,000 $300,000 $2,100,000 $900,000 $2,100,000 $3,000,000 $3,000,000 $3,000,000 $900,000 $2,400,000 $1,600,000 $1,000,000 $1,300,000 $1,800,000 $4,500,000 $4,800,000 $5,200,000 $4,500,000 $4,800,000 $5,300,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $0 $4,500,000 --> (c) Percentage of completion 33.33% 80.00% 100.00% ->(d)= (a)/(c) Total Estimated Profit (Loss) $500,000 $500,000 $500,000 -->(a)-(c) Gross profit recognized $166,667 $233,333 $100,000 [2021 = $500000 x 33.33%; 2022 = ($500000 x 80%)-$166667; 2023 = ($500000 x 100.00%) - $233333 - $166667.

(v1)=(01) (v2)=(01)+(u2) (v3) = (u1)+(u2)+(u3) (w1) (w2) (w3) Situation 2023 $0 $0 Nm 7 in (Based on Completion) 2021 2022 2023 Gross profit recognized $0 $0 $500,000 [2023 = $5000000 - $4500000 = $500000] Actual Cost incurred to date 2021 2022 2023 $1,500,000 $3,600,000 $4,500,000 $1,500,000 $2,400,000 $4,800,000 $1,500,000 $3,600,000 $5,200,000 $500,000 $3,500,000 $4,500,000 $500,000 $3,500,000 $4,800,000 $500,000 $3,500,000 $5,300,000 Estimated Cost to Incur 2021 2022 $3,000,000 $900,000 $3,000,000 $2,400,000 $3,000,000 $1,500,000 $3,500,000 $875,000 $3,500,000 $1,500,000 $4,600,000 $1,700,000 $0 $0 $0 Situation-2: Situation-3: (Based on Percentage-of-Completion) 2021 2022 2023 $5,000,000 $5,000,000 $5,000,000 (Based on Percentage-of-Completion) 2021 2022 2023 $5,000,000 $5,000,000 $5,000,000 Contract Price Contract Price Actual costs to date Estimated costs to complete Total estimated costs $1,500,000 $3,000,000 $4,500,000 $2,400,000 $2,400,000 $4,800,000 $4,800,000 $0 $4,800,000 Actual costs to date Estimated costs to complete Total estimated costs $1,500,000 $3,000,000 $4,500,000 $3,600,000 $1,500,000 $5,100,000 $5,200,000 $0 $5,200,000 Percentage of completion 33.33% 50.00% 100.00% -->(d)=(a)/(c) Percentage of completion 33.33% 70.59% 100.00% -->(d)=(a)/(c)

Total Estimated Profit (Loss) $500,000 $200,000 $200,000 -->(a)-(c) Total Estimated Profit (Loss) $500,000 $100,000 $200,000 -->(a)-(c) Gross profit recognized $166,667 $66,667 $100,000 [2021 = $500000 x 33.33%; 2022 = ($200000 x 50%)-$166667; 2023 = ($200000 x 100.00%) - (-$66667) - $166667. Gross profit recognized $166,667 $266,667 $100,000 [2021 = $500000 x 33.33%; 2022 = (-$100000 x 70.59%)-$166667; 2023 = (-$200000 x 100.00%) - (-$266667) - $166667. (Based on Completion) 2021 2022 2023 Gross profit recognized $0 $200,000 [2023 = $5000000 - $4800000 = $200000] (Based on Completion) 2021 2022 2023 Gross profit recognized $100,000 $100,000 [2022 = -$266667 + $166667; 2023 = $5000000 - $5200000-(-$100000) = -$100000] SO $0 Situation-4: Situation-5: (Based on Percentage-of-Completion) 2021 2022 2023 $5,000,000 $5,000,000 $5,000,000 (Based on Percentage-of-Completion) 2021 2022 2023 $5,000,000 $5,000,000 $5,000,000 Contract Price Contract Price $4,800,000 Actual costs to date Estimated costs to complete Total estimated costs $500,000 $3,500,000 $4,000,000 $3,500,000 $875,000 $4,375,000 $4,500,000 $0 $4,500,000 Actual costs to date $500,000 Estimated costs to complete_$3,500,000 Total estimated costs $4,000,000 $3,500,000 $1,500,000 $5,000,000 SO $4,800,000 Percentage of completion 12.50% 80.00% 100.00% ->(d)= (a)/(c) Percentage of completion 12.50% 70.00% 100.00% -->(d)= (a)/(c)

Total Estimated Profit (Loss) $1,000,000 $625,000 $500,000 -->(a)-(c) -->(a)-(c) Gross profit recognized $125,000 $375,000 $0 [2021 = $1000000 x 12.5%; 2022 = ($625000 x 80%)-$125000; 2023 = ($500000 x 100.00%) - $375000 - $125000. (Based on Completion) 2021 2022 2023 Gross profit recognized $0 $500,000 [2023 = $5000000 - $4500000 = $500000] Total Estimated Profit (Loss) $1,000,000 $0 $200,000 Gross profit recognized $125,000 -$125,000 $200,000 [2021 = $1000000 x 12.5%; 2022 = ($0 x 70%)-$125000; 2023 = ($200000 x 100.00%) - ($125000) - $125000. (Based on Completion) 2021 2022 2023 Gross profit recognized $0 $0 $200,000 [2023 = $5000000 - $4800000 = $200000] $0 Situation-6: (Based on Percentage-of-Completion) 2021 2022 2023 $5,000,000 $5,000,000 $5,000,000 Contract Price Actual costs to date Estimated costs to complete Total estimated costs Percentage of completion $500,000 $4,600,000 $5,100,000 9.80% $3,500,000 $1,700,000 $5,200,000 67.31% $5,300,000 $0 $5,300,000 100.00% Total Estimated Profit (Loss) $100,000 -$200,000 $300,000 Gross profit recognized $100,000 $100,000 $100,000 [2021 = -$100000 x 9.8%; 2022 = (-$200000 x 67.31%)-(-$100000); 2023 = (-$300000 x 100.00%) - (-$100000) - (-$100000).