Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cherry co. enters into a long-term fixed price con

Cherry Co. enters into a long-term fixed price contract to build a warehouse...

70.2K

Verified Solution

Question

Accounting

image

Cherry Co. enters into a long-term fixed price contract to build a warehouse for $30,000,000. In the first year of the contract, Cherry incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete are $12,000,000. Cherry billed $10,000,000 in years 1 and collected $9,000,000 by the end of year 1. How much gross profit should Cherry recognize in Year 1 assuming the use of the completed-contract method? O $0 O $2,600,000 O $3,000,000 O $4,000,000 O $5,600,000

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

Finance
1.2K views

Given the following information for Michigan Corp. Find the WACC. Assume the tax rate is 35%,...

Chemistry
1.2K views

Given 319.5 g of hot tea at 72.0 ∘C, what mass of ice at 0...

Physics
1.2K views

a A 7 22 A vessel contains oil density 0 8 gm cm over mercury...

Basic Math
1.2K views

4 Exp Log Models Find the exponential function that models the data in the table...

Statistics
1.2K views

Round 16 749 to the nearest thousand

Calculus
1.2K views

Find the indefinite integral 12x cos x 27 dx O3sin x 27 c O 3x...

Calculus
1.2K views

Suppoes He demand function for x thousand of a certain item is p 130720 where...

Algebra
1.2K views

Solve the system by elimination.y=2x1y = x1. (5, 3)2. (1, 1)3. (0, 2)4. (2, -9)5....

Accounting
1.2K views

The Clayton Company is a retail company that began operations on October 1,2025, when it...

Accounting
1.2K views

! Required information [The following information applies to the questions displayed below.] ...

Accounting
1.2K views

Courington Detailing's cost formula for its materials and supplies is $1,900 per month plus $9...

Accounting
1.2K views

Units Question 4 H Ltd makes the following purchases and sales: 01-Thg1 Purchases 6.000...