Tullis Construction enters into a long- term fixed price contract to build an office tower...
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Accounting
Tullis Construction enters into a long- term fixed price contract to build an office tower for $ 10 300 000 . In the first year of the contract Tullis incurs $ 2 000 000 of cost and the engineers determined that the remaining costs to complete the project are $ 6 000 000 . Tullis billed $ 3 900 000 in year 1 and collected $3,500,000 by the end of the year. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage- of-completion method? (Round any intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest dollar.)
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