At the beginning of 2012, Massachusetts Road Construction entered into a contract to build a...
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At the beginning of 2012, Massachusetts Road Construction entered into a contract to build a road for the government. Construction will take 3 years. The following information as of December 31st, 2012 is available for the contract:
Total revenue according to contract
$15,000
Updated estimated cost in 2013-2014 period
$7,200,000
Cost incurred during 2012
$4,800,000
Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the Percentage-of-Completion method, how much revenue will be reported in 2012?
$6,000,000
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