Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. mikell builders contracted to build a high-rise

2. Mikell Builders contracted to build a high-rise for $8,000,000. Construction began in 2021...

90.2K

Verified Solution

Question

Accounting

2. Mikell Builders contracted to build a high-rise for $8,000,000. Construction began in 2021 and is expected to be completed in 2023. Data for 2021,2022, and 2023 are:
202120222023
Costs to date 3,500,0004,200,0006,750,000
Estimated costs to complete 2,500,0002,200,0000
Mikell uses the percentage-of-completion method.
Required:
a. Compute the amount of gross profit (loss) that Mikell must report for 2021.
b. Compute the amount of gross profit (loss) that Mikell must report for 2022.
c. Compute the amount of gross profit (loss) that Mikell must report for 2023.
d. Assume instead that Mikell uses the completed contract method. Compute the amount of gross profit (loss) that Mikell must report for each the three years -2022,2022, and 2023.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students