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A construction company entered into a fixed-price contract to build an office building for $20...

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Accounting

A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The building was completed during the second year. Construction costs incurred during the second year were $10 million. How much gross profit will the company recognize in the first year and in the second year applying the completed contract method?

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