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  3. brief exercise 6-35 (algo) long-term contract; rev

Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion [LO6-9] A construction company entered...

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Accounting

image Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion [LO6-9] A construction company entered into a fixed-price contract to build an office building for $40 million. Construction costs incurred during the first year were $14 million, and estimated costs to complete at the end of the year were $21 million. The building was completed during the second year. Construction costs incurred during the second year were $22 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue upon contract completion? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000 ). Leave no cells blank - be certain to enter " 0 " wherever required

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