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Whitepunk [10]
3 years ago
15

In 2021, Long Construction Corporation began construction work under a three-year contract. The contract price is $1,600,000. Lo

ng recognizes revenue over time according to percentage of completion for financial reporting purposes. The financial statement presentation relating to this contract at December 31, 2021, is as follows: Balance Sheet Accounts receivable (from construction progress billings) $ 30,000 Construction in progress $ 100,000 Less: Billings on construction contract (94,000 ) Cost and profit of uncompleted contracts in excess of billings 6,000 Income Statement Income (before tax) on the contract recognized in 2021 $ 20,000 Required: 1. What was the cost of construction actually incurred in 2021
Business
1 answer:
KiRa [710]3 years ago
3 0

Answer:

$80,000

Explanation:

We can find out the cost of construction actually incurred in 2021 by adding the construction in progress with income before the tax on the contract recognized in 2021

Cost of construction actually incurred = construction in progress + income before the tax on the contract recognized in 2021

Cost of construction actually incurred = $100,000 - $20,000

Cost of construction actually incurred = $80,000

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3 years ago
Marco works in the marketing department of a luxury fashion brand. He is making a presentation on the success of a recent market
mr Goodwill [35]

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An investment banking firm has been hired to roll up various partnerships into one master limited partnership. What is the compe
liq [111]

Answer:

2%

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3 0
3 years ago
Occasionally our economy experiences an unusual combination of rising prices and high unemployment. economists have given this u
Alborosie

Occasionally our economy experiences an unusual combination of rising prices and high unemployment. economists have given this unusual pairing the name stagflation.

Stagflation is a combination of the words ‘stagnation’ and ‘inflation’. It refers to the economic trend where there is rising prices yet high levels of unemployment.

It leads to an intractable situation where policy initiatives to boost economic growth such as expansionary monetary policy worsens the inflation rate, while attempts to rein in inflation has a further dampening effect on the economy. It is often caused by poor economic policies.

Stagflation was observed in the US economy during the oil crisis of the 1970s that caused a major recession. But inflation and unemployment rates were at a high during this time.

To learn more about stagflation : brainly.com/question/11224683

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8 0
2 years ago
Using the following information, what is the amount of gross profit?​
SIZIF [17.4K]

Answer:

Gross profit= $54,700

Explanation:

Giving the following information:

Purchases $37,000

Merchandise inventory, September 1 6,100

Merchandise inventory, September 30 6,800

Sales 91,000

<u>First, we need to calculate the cost of goods sold:</u>

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 6,100 + 37,000 - 6,800

COGS= $36,300

<u>Now, the gross profit:</u>

Gross profit= sales - COGS

Gross profit= 91,000 - 36,300

Gross profit= $54,700

3 0
3 years ago
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