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Art [367]
3 years ago
12

In Spring 2018, Parmac Engineering Company signed a $160 million contract with the city of Parkersburg, to construct a new city

hall. Parmac expects to construct the building within two years and incur expenses of $120 million. The city of Parkersburg paid $40 million when the contract was signed, $80 million within the next six months, and the final $40 million exactly one year from the signing of the contract. Parmac incurred $48 million in costs during 2018 and rest in 2019 to complete the contract on time. Using the percentage-of-completion method how much revenue should Parmac recognize in 2018?
Business
1 answer:
marta [7]3 years ago
7 0

Answer:

By using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018

Explanation:

Percentage-of-completion method : Under this method,

First we have to calculate the percentage which is based on current period cost to total period cost.

After that, multiply the percentage with the revenue so that we get to know how much revenue is being recognized during an particular year.

In mathematically,

Estimated Cost percentage =  current period cost ÷ total period cost

                                              = $48 million ÷ $120 million

                                              = 40%

Now,

Revenue recognized = Estimated cost percentage × Revenue

                                   = 40% × $160 million

                                   = $64 million

Hence, by using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018

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3 years ago
A year ago, Phyllis Peterson purchased 100 shares of Fidelity's Contrafund for $50 each. During the year, her total return from
Y_Kistochka [10]

Phyllis' RATE (percentage) of return is 7 percent

<u>Explanation:</u>

Data provided in the question:

Purchase price for each share = $50

Dividend received = $1 per share

worth of shares at the end of year = $52.50

Thus, total return on the share  = dividend received plus worth of sahres at the end of year minus purchase price

= $1 plus $52.50 minus $50 = $3.5

Therfore, rate of return = [ total return on the shares by purchase price ] into 100%

= [$3.5 by $50] inot 100 percent

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hence, the option with 7 percent will be the correct answer.

6 0
3 years ago
Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at
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Answer:

The journal entries for the given economic events are given below:

Date         Account Title                         Debit     Credit

7/1/17      Treasury Stock (113 X $88)     9,944

                 Cash                                                       9,944

9/1/17       Cash (62 X $94)                     5,828

                 Treasury Stock (60 X $88)                   5,280

                  Paid-in Capital from

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(Paid in capital from Treasury Stock = 5828 - 5280 = 548)

11/1/17 Cash (51 X $86)                           4,386

                Paid-in Capital from

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(Paid in capital from Treasury Stock = 4488 - 4386 = 548)

3 0
2 years ago
In its first 10 years a mutual fund produced an average annual return of 20.4420.44​%. Assume that money invested in this fund c
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Answer:

3.73 years or 4 years approx

Explanation:

The computation of the number of years taken for money invested for double is shown below:

As we know that

Amount = Principal × (1 + interest rate ÷ time period)^interest rate × time period

where,

We assume the principal be P

And, the amount is 2P

And, the other values would remain the same

So,

2P = P (1 + 0.2044 ÷ time period)^ 1  × time period

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Now take the log both sides

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Hence the correct option is B.

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