A long-term contract shows the following in 2019:; Total sales price $80000; Total estimated cost (50000);...
A long-term contract shows the following in 2019:; Total sales price $80000; Total estimated cost (50000); Total estimated profit $30000. Costs incurred to date in 2019 is $25000.
BROWN COMPANY ELECTS TO REPORT THE PROFIT FOR REGULAR TAX PURPOSES USING THE COMPLETED-CONTRACT-method.
What amount must be reported for AMT?
Homework Answers
| Amount must be reported for AMT | $15,000 | ||
| Working | |||
| Total sales price | $80,000 | ||
| Total estimated cost | $50,000 | ||
| Total estimated profit | $30,000 | ||
| Costs incurred to date in 2019 is $25000 | |||
| $25,000 Completed / $50,000 = .50 Complete | |||
| CompletedContract | % Completion | Adjustment | |
| 2019 | $0 | ($30,000 x 50%) | $15,000 |
Add Answer to:
A long-term contract shows the following in 2019:; Total sales
price $80000; Total estimated cost (50000);...
Robin Construction Company began a long term contract in 2018. The contract price was $800,000. The...
Robin Construction Company began a long term contract in 2018. The contract price was $800,000. The estimated cost of the contract at the time it was begun was $500,000. The actual cost incurred in 2018 was $350,000. The contract was completed in 2019 and the cost incurred was $125,000. Under the percentage of completion method. a. Robin should report $90,000 of income in 2018 b. Robin should report $210,000 income in 2018 c. Robin should report $300,000 income in 2018...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year $ 60 $ 120 $ 70 Estimated costs to complete as of...
7 On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a...
7 On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 0.5 points 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 120...
A company has a contract to build a bridge for $100,000 with an estimated time to...
A company has a contract to build a bridge for $100,000 with an estimated time to completion of three years. A reliable total cost estimate for the project would be $60,000. In the first year of the project, the company incurred a cost of $24,000. (a) Assume that the contractor bases the degree of completion on the percentage of total costs incurred to date. Under the percentage-of-completion method, what amount of gross profit the company will report in the first...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 S 30 140 $40...
a 200 points 2/6/2020 Assignment Print View 8. Award: 2.00 points Exercise 5-18 Long-term contract revenue...
a 200 points 2/6/2020 Assignment Print View 8. Award: 2.00 points Exercise 5-18 Long-term contract revenue recognition over time vs. upon project completion (LOS-91 On June 15, 2018 Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, DC, for 1430 million. The expected completion date is April 1, 2020. just in time for the 2020 baseball season costs incurred and estimated costs to complete a year-end for the the contract are as follows (s...
Exercise 5-18 Long-term contract; revenue recognition over time vs. upon project completion [LO5-9] On June 15,...
Exercise 5-18 Long-term contract; revenue recognition over time vs. upon project completion [LO5-9] On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.ะก., for $270 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 $ 50 $100 60...
The contract price for a 3-year construction contract is $100 The actual cost and estimated costs...
The contract price for a 3-year construction contract is $100 The actual cost and estimated costs for each vear are given below: Items 2016 2017 2018 Actual cost incurred each year $10 Estimated cost to complete $40 Under Percentage of Completion method (You first prepare the table I showed you in the class to make your calculations easier) S20 $30 1. Compute Actual cost incurred to date 2. Compute total estimated cost for each year 3. Compute estimated gross profit...
* (Long-Term Contract with an Overall Loss) On June 1, 2020, Roman Construction Company Inc. contracted...
* (Long-Term Contract with an Overall Loss) On June 1, 2020, Roman Construction Company Inc. contracted to build an office building for Sicily Corp. for a total contract price of $2,600,000. On July 1, Roman estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Sicily 2020, 2021, and 2022:...
(Long-Term Contract with Interim Loss) On May 1, 2020, Jackson Construction Company contracted to construct a...
(Long-Term Contract with Interim Loss) On May 1, 2020, Jackson Construction Company contracted to construct a factory building for a total contract price of $9,600,000. The building was completed by May 31, 2022. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2020, 2021, and 2022 are given below. 2020 2021 2022 Contract costs incurred during the year $3,400,000 $2,400,000 $2,900,000 Estimated costs to complete the contract at 12/31 4,600,000 3,100,000 -0-...
7 On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 0.5 points 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 120...
A company has a contract to build a bridge for $100,000 with an estimated time to completion of three years. A reliable total cost estimate for the project would be $60,000. In the first year of the project, the company incurred a cost of $24,000. (a) Assume that the contractor bases the degree of completion on the percentage of total costs incurred to date. Under the percentage-of-completion method, what amount of gross profit the company will report in the first...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 S 30 140 $40...
a 200 points 2/6/2020 Assignment Print View 8. Award: 2.00 points Exercise 5-18 Long-term contract revenue recognition over time vs. upon project completion (LOS-91 On June 15, 2018 Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, DC, for 1430 million. The expected completion date is April 1, 2020. just in time for the 2020 baseball season costs incurred and estimated costs to complete a year-end for the the contract are as follows (s...
Exercise 5-18 Long-term contract; revenue recognition over time vs. upon project completion [LO5-9] On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.ะก., for $270 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 $ 50 $100 60...
The contract price for a 3-year construction contract is $100 The actual cost and estimated costs for each vear are given below: Items 2016 2017 2018 Actual cost incurred each year $10 Estimated cost to complete $40 Under Percentage of Completion method (You first prepare the table I showed you in the class to make your calculations easier) S20 $30 1. Compute Actual cost incurred to date 2. Compute total estimated cost for each year 3. Compute estimated gross profit...
Most questions answered within 3 hours.
-
Chargaff's results yielded a molar ratio of 0.400 for A to G in
avian tubercle bacillus...
asked 1 hour ago -
Which of the following binds ATP/ADP?
a. microfilaments
b. microtubules
c. intermediate filaments
d. microfilaments and...
asked 1 hour ago -
Assume that the situation can be expressed as a linear cost
function. Find the cost function....
asked 2 hours ago -
(Sort ArrayList) Write the following method that sorts an
ArrayList: public static > void sort(ArrayList list)...
asked 3 hours ago -
2) A 9 volt battery is connected to a parallel plate capacitor
with an initial capacitance...
asked 2 hours ago -
Prince Equipment has to decide whether to obtain $1,000,000 of
financing by: (1) selling common stock...
asked 4 hours ago -
The terms electrical and electronic have similar but
different meanings which of the following statement is...
asked 4 hours ago -
You wish to test the claim that the mean GPA of night students
is than 2.5...
asked 4 hours ago -
A soft drink machine outputs a mean of 25 ounces per cup. The
machine's output is...
asked 5 hours ago -
Ross Co., Westerfield, Inc., and Jordan Company announced a new
agreement to market their respective products...
asked 5 hours ago -
What is the distance run by a runner 50m/hr and
60m/hr?
asked 6 hours ago -
Write a descendant selector rule that affects the <em>
element that is contained within the
<p>...
asked 6 hours ago