Long-term Contracts
Koolman Construction Company began work on a contract in 2017.
The contract price is $3,000,000, and the company determined that
its performance obligation was satisfied over time. Other
information relating to the contract is as follows:
2017
2018
Costs incurred during the year
$ 600,000
$ 700,000
Estimated costs to complete, December 31
$1,400,000
$1,200,000
Billings during the year
$500,000
$850,000
Collections during the year
$400,000
$800,000
Required:
1. Compute the gross profit or loss recognized in 2017...