Question

Brady Construction Company contracted to build an apartment complex for a price of $6,000,000. Construction began in 2018 and was completed in 2020. 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.

							Estimated Costs to Complete
	Costs Incurred During Year						(As of the End of the Year)
Situation	2018		2019		2020		2018		2019		2020
1	1,600		2,430		1,200		3,630		1,200		—
2	1,600		1,200		2,800		3,630		2,800		—
3	1,600		2,430		2,400		3,630		2,300		—
4	600		3,100		1,200		4,200		925		—
5	600		3,100		2,000		4,200		2,300		—
6	600		3,100		2,800		5,600		2,600		—

Required:
Complete the following table. (Do not round intermediate calculations. Enter answers in dollars. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.)

Complete the following table.

                                Gross Profit (Loss) Recognized

                   Revenue Recognized Over Time             Revenue Recognized Upon Completion

Situation       2016       2017       2018                             2016       2017     2018       

1.

2.

3.

4.

5.

6.

Answer 1

	Revenue Recognised Over Time			Revenue Recognised Upon Completion
Situations	2016	2017	2018	2016	2017	2018
1	235564	357763	176673			770000
2	235564	-35564	200000			400000
3	235564	-445659	-219905			-430000
4	150000	950000	0			1100000
5	150000	-150000	300000			300000
6	-19355	-156836	-323809			-500000

1. 2016:-

% = 1600/(1600 + 3630) = 30.59%

Revenue = 6000000 * 30.59% = 1835563.97

Gross Profit = 1835563.97 – 1600000 = 235563.97

    2017 :-

% = (1600 + 2430)/( 1600 + 3630 + 1200) = 77.05%

Revenue = 6000000 * 77.05% = 4623326.74

Gross Profit = 4623326.74 – 1600000 – 2430000 – 235564 = 357762.74

    2018:-

Gross Profit = 6000000 – 1600000 – 2430000 – 1200000 - 235564 – 357763 = 176673

2. 2016:-

% = 1600/(1600 + 3630) = 30.59%

Revenue = 6000000 * 30.59% = 1835563.97

Gross Profit = 1835563.97 – 1600000 = 235563.97

    2017 :-

% = (1600 + 1200)/( 1600 + 1200 + 2800) = 50%

Revenue = 6000000 * 50% = 3000000

Gross Profit = 3000000 – 1600000 – 1200000 – 235564 = -35564

    2018:-

Gross Profit = 6000000 – 1600000 – 1200000 – 2800000 - 235564 + 35564= 200000