Question

Brady Construction Company contracted to build an apartment complex for a price of $5,200,000. 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	1,520		2,190		960		3,150		960		—
2	1,520		960		2,480		3,150		2,480		—
3	1,520		2,190		1,760		3,150		1,660		—
4	520		3,020		1,040		3,640		885		—
5	520		3,020		1,440		3,640		1,660		—
6	520		3,020		2,000		4,800		1,880		—
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.) 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.)

Answer 1

Gross Profit (Loss) Recognized ( $ in 000)
Situation-1	Revenue Recognized Over Time			Revenue recognised Upon Completion
	2018	2019	2020	2018	2019	2020
1	$172.51	$1,252.73	$2,814.76	$0.00	$0.00	$4,240.00
2	$172.51	$318.66	$2,228.84	$0.00	$0.00	$2,720.00
3	$172.51	$595.42	$2,672.08	$0.00	$0.00	$3,440.00
4	$130.00	$871.51	$3,158.49	$0.00	$0.00	$4,160.00
5	$130.00	$205.56	$3,424.44	$0.00	$0.00	$3,760.00
6	-$11.73	$196.63	$3,015.10	-$11.73	$184.90	$3,200.00
Revenue Recognised in 2018 ($in 000)
Situation	Cost Incurred during the year (A)	Estimate Cost to complete the project (B)	Total Cost Incurred C=A+B	% of Completion D=A/C*100	Total Contract Revenue E	Gross margin F=E-C	Gross Profit Reccognized G=F*D
1	$1,520.00	$3,150.00	$4,670.00	32.55%	$5,200.00	$530.00	$172.51
2	$1,520.00	$3,150.00	$4,670.00	32.55%	$5,200.00	$530.00	$172.51
3	$1,520.00	$3,150.00	$4,670.00	32.55%	$5,200.00	$530.00	$172.51
4	$520.00	$3,640.00	$4,160.00	12.50%	$5,200.00	$1,040.00	$130.00
5	$520.00	$3,640.00	$4,160.00	12.50%	$5,200.00	$1,040.00	$130.00
6	$520.00	$4,800.00	$5,320.00	9.77%	$5,200.00	-$120.00	-$11.73
										Revenue Recognised in 2019 ( $ in 000)
Situation	Cost Incurred during the year (A)	Estimate Cost to complete the project (B)	Total Cost Incurred C=A+B	% of Completion D=A/C*100	Total Contract Revenue E	Gross margin F=E-C	Gross Profit to be Reccognized G=F*D	Gross Profit already recognised in2018 (H)	Gross Profit /(Loss) recognised (I=G-H)
1	$2,190.00	$960.00	$3,150.00	69.52%	$5,200.00	$2,050.00	$1,425.24	$172.51	$1,252.73
2	$960.00	$2,480.00	$3,440.00	27.91%	$5,200.00	$1,760.00	$491.16	$172.51	$318.66
3	$2,190.00	$1,660.00	$3,850.00	56.88%	$5,200.00	$1,350.00	$767.92	$172.51	$595.42
4	$3,020.00	$885.00	$3,905.00	77.34%	$5,200.00	$1,295.00	$1,001.51	$130.00	$871.51
5	$3,020.00	$1,660.00	$4,680.00	64.53%	$5,200.00	$520.00	$335.56	$130.00	$205.56
6	$3,020.00	$1,880.00	$4,900.00	61.63%	$5,200.00	$300.00	$184.90	-$11.73	$196.63
Revenue Recognised in 2020 ($in000)
Situation	Cost Incurred during the year (A)	Total Contract Revenue (B)	Gross margin C=B-A	Gross Profit to be Reccognized D=C	Gross Profit already recognised in2018 (E)	Gross Profit already recognised in2019 (F)	Tptal Gross profit Recofnised till dateG=E+F	Gross Profit /(Loss) recognised in2020 (H)=C-G
1	$960.00	$5,200.00	$4,240.00	$4,240.00	$172.51	$1,252.73	$1,425.24	$2,814.76
2	$2,480.00	$5,200.00	$2,720.00	$2,720.00	$172.51	$318.66	$491.16	$2,228.84
3	$1,760.00	$5,200.00	$3,440.00	$3,440.00	$172.51	$595.42	$767.92	$2,672.08
4	$1,040.00	$5,200.00	$4,160.00	$4,160.00	$130.00	$871.51	$1,001.51	$3,158.49
5	$1,440.00	$5,200.00	$3,760.00	$3,760.00	$130.00	$205.56	$335.56	$3,424.44
6	$2,000.00	$5,200.00	$3,200.00	$3,200.00	-$11.73	$196.63	$184.90	$3,015.10