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Alexxandr [17]
4 years ago
14

Mill Construction Co. uses the percentage-of-completion method of accounting. During 20X5, Mill contracts to build an apartment

complex for Drew for $20mn. Mill estimates that total costs would amount to $16mn over the period of construction. In connection with this contract, Mill incurs $2mn of construction costs during 20X5. Mill bills and collects $3mn from Drew in 20X5.What amount should Mill recognize as gross profit for 20x5?
Business
1 answer:
dezoksy [38]4 years ago
5 0

<u>Answer: </u>$500,000

<u>Explanation:</u>

The difference between the contract amount and cost incurred is the profit in this case.

Profit from the project = $20mn-$16mn

=$4mn

In the above mentioned project only 12.5% complete at the end of 20X5 ($2mn/$16mn). Total gross profit through the end of 20X5 is therefore

=$4mn x 12.5%

=$500,000

The $500,000 amount is the proportion of completion applied to the total contract profit of $4mn. This is the beginning year of contract so there is no previous profits or expenses that needs to be adjusted. The entire $500,000 gross profit is recognized in 20X5.

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<h3>What is a suas?</h3>

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The aircraft is associated with elements such as including communication links and the components that control the small unmanned aircraft that are required for the safe and efficient operation of the small unmanned aircraft in the national airspace system.

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2 years ago
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Snezhnost [94]

Answer:

5%

Explanation:

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IRR can be calculated with a financial calculator  

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To find the IRR using a financial calculator:

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5 0
3 years ago
Organizations can use common core security principles recommended as industry best practices when developing policies, standards
egoroff_w [7]

Answer:

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3 years ago
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mote1985 [20]

Answer:

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Explanation:

The above steps enable the companies to estimate the market demand for their products.  They also segment the demand to ascertain the segments that will perform better than others.  The behavior of consumers is modeled during the estimation to verify how the price of the product, consumer income, or any other variables will impact the market demand.

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