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Franklin Construction entered into a fixed-price contract to build a freeway-connecting...

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Accounting

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Franklin Construction entered into a fixed-price contract to build a freeway-connecting ramp for $26m llion. Construction costs incurred in the first year were $16 miltion and estimated remaining costs to complete at the end of the year were $17 million. How much gross profit or loss will Ftanklin recognize in the first year if itrecognizes revenue over time according to percentage of completion? How much gross profit or loss will Franklin recognize in the first year if it instead recognizes revenue upon contract completion

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