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E17.32(LO 4)(Contract Costs, Collectibility) Refer to the information in E17.31. Instructions a. Does...

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Accounting

E17.32(LO 4)(Contract Costs, Collectibility) Refer to the information in E17.31.
Instructions
a. Does the accounting for capitalized costs change if the contract is for 1 year rather than 3 years? Explain.
b. Dan's Demolition is a startup company; as a result, there is more than insignificant uncertainty about Dan's ability to make the 6-month payments on time. Does this uncertainty affect the amount of revenue to be recognized under the contract? Explain.
*E17.33(LO 5,6)(Recognition of Profit on Long-Term Contracts) During 2025, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2027. The following information is available.
\table[[,2025,2026,2027],[Costs incurred to date,$400,000,$825,000,$1,070,000
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