Question

In 2018, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions):What is the amount of gross profit on the project recognized by CCC during 2018?

Answer 1

Answer:

Answer is $72 Million.

Explanation:

Construction in progress = actual costs incurred + gross profit recognized

$207 = $135 million + X

X = $72 Million

Therefore, the amount of gross profit on the project recognized by CCC during 2016 = $72

million.