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Wildhorse Construction is constructing an office building under contract for Cannon Company and uses the...

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Accounting

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Wildhorse Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $2000000 each quarter. The total contract price is $24000000 and Wildhorse estimates total costs of $18200000. Wildhorse estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2022, Wildhorse Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $18450000 due to unanticipated price increases. Wildhorse Construction completes the remaining 25% of the building construction on December 31,2023 , as scheduled. At that time the total costs of construction are $19200000. What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Wildhorse will recognize for the year ended December 31, 2023? Revenue Expenses $24000000$19200000 $6000000$5362500 $6000000$4800000

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