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scoundrel [369]
3 years ago
6

Camden Corporations agreed to build a warehouse for a client at an agreed contract price of $ 900,000. Expected (and actual) cos

ts for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2018. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method.
Business
1 answer:
weqwewe [10]3 years ago
4 0

Answer:

Key figures:

2016:

Revenue = $270,000

Expenses = $202,500

Income = $67,500

2017:

Revenue = $450,000

Expenses = $337,500

Income = $112,500

2018:

Revenue = $180,000

Expenses = $135,000

Income = $45,000

Explanation:

Under this method, percentage of work completed is determined using the following <u>formula:</u>

<em>Percentage of work completed = (Total Expenses incurred on the project till the close of the accounting period) ÷ (Total Estimated Cost of the Contract)</em>

Total estimated cost = $202,500 + $337,500 + $135,000 = $675,000

<u>2016:</u>

Percentage of work completed = ($202,500 ÷ $675,000)×100 = 30%

Expenses in 2016 = $202,500 (answer)

Revenue in 2016 = $900,000 × 30% = $270,000 (answer)

Income in 2016 = Revenue - Expenses

Income in 2016 = $270,000 - $202,500

Income in 2016 = $67,500 (answer)

<u>2017:</u>

Percentage of work completed = ($337,500 ÷ $675,000)×100 = 50%

Expenses in 2017 = $337,500 (answer)

Revenue in 2017 = $900,000 × 50% = $450,000 (answer)

Income in 2017 = Revenue - Expenses

Income in 2017 = $450,000 - $337,500

Income in 2017 = $112,500 (answer)

<u>2018:</u>

Percentage of work completed = ($135,000 ÷ $675,000)×100 = 20%

Expenses in 2018 = $135,000 (answer)

Revenue in 2018 = $900,000 × 20% = $180,000 (answer)

Income in 2018 = Revenue - Expenses

Income in 2018 = $180,000 - $135,000

Income in 2018 = $45,000 (answer)

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Answer:

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Explanation:

As per the data given in the question,

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Total profit = profit for stock A + profit for stock B  

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Capital gain tax = Capital gain × Tax rate

= $8,800 × 35%

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5 0
2 years ago
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A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

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In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

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A market situation where a small number of sellers compose the entire industry is called
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Answer:

The correct answer is: oligopoly.

Explanation:

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3 years ago
A count of supplies indicated that $104 of supplies had been used.
tankabanditka [31]
It can be assumed that $104 worth of Supplies have been used?
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You observe that the inflation rate in the United States is 1.5 percent per year and that T-bills currently yield 2.0 percent an
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Answer:

(a) 7.5%

(b) 8.5%

(c) 9.5%

Explanation:

(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate

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X - 1.5 = 8 - 2

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(b)

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(c)

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