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  3. 1. jre2 inc. entered into a contract to install a

1. JRE2 Inc. entered into a contract to install a pipeline for a fixed price...

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Accounting

1. JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,290,000. JRE2 recognizes revenue upon contract completion.

Cost incurred Estimated Cost to Complete
2017 $ 262,000 $ 1,610,000
2018 1,660,000 560,000
2019 510,000 0

In 2018, JRE2 would report gross profit (loss) of:

Multiple Choice

  • $0.

  • $(242,000).

  • $(192,000).

  • $(334,000).

2. imageThe 950 is wrong, just ignore it

Beaumont Company enters into a contract to provide a high quality diving-certification preparation package, including goggles, snorkels, air tanks, fins, a wetsuit, and 5 private lessons to get ready for diving certifications. The entire package sells for $2,500. Other competing sellers in the same region charge an average of $250 for a set of goggles and $750 for the lessons, if sold separately. Beaumont Company usually sells at a 5% discount compared to other shops, since it is a bit farther away from the ocean. Required: What would be Beaumont's stand-alone selling price of the goggles and the lessons, based on adjusted market assessment approach? (Round your answer to 2 decimal places.) Stand-alone selling price $ 950.00

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