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Setler79 [48]
4 years ago
6

A construction company entered into a fixed-price contract to build an office building for $28 million. Construction costs incur

red during the first year were $8 million and estimated costs to complete at the end of the year were $12 million.The building was completed during the second year. Construction costs incurred during the second year were $13 million.How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue upon contract completion
Business
1 answer:
Radda [10]4 years ago
4 0

Answer:

$3.2 million

Explanation:

The revenue and gross profit or loss which the company identify in the first and second year if it recognizes revenue upon contract completion is calculated below.

Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million

Revenue to recognize = $8m/$20m*$28m = $11.2 million

Gross Profit = Revenue recognized less costs incurred

= $11.2m - $8m = $3.2 million

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The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to yiel
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3 years ago
Suppose the town of boone has a total population of 50,000 people. of those, 45,000 people are employed. there are 1,000 full-ti
slega [8]
Population - 50,000
Employed - 45,000
Students not looking for work - 1,000

To calculate Boone's unemployment rate you'll use the formula: 
Unemployment rate = number of people unemployed / labor force

Those that fall into the unemployment category are those that are not working but are actively looking/wanting to work. Students, stay-at-home moms etc that are not wanting to work, though unemployed, to not fall into this category.

The labor force is made up of everyone willing and able to work.

First, let's subtract the students who are not looking for work from the population so get the labor force. 50,000 - 1,000 = 49,000 (labor force)

Next, to get the number of people unemployed let us subtract the labor force of 49,000 by those already employed of 45,000. 49,000 - 45,000 = 4,000

Finally, we are able to calculate the unemployment rate of Boone. 
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3 0
4 years ago
When coca-cola wanted to regain market share for its vitaminwater product lines, it based its marketing strategy on a __________
crimeas [40]

When coca-cola wanted to regain market share for its vitaminwater product lines, it based its marketing strategy on a "situation analysis",....................


Prior to building up any marketing strategy, it is essential to lead a situation analysis. A situational analysis is a basic piece of any business or marketing plan and ought to be looked into intermittently to guarantee that it is kept current.  

A situational analysis characterizes the inner and external factors of an organization or association and obviously recognizes the capacities, clients, potential clients and the business condition and the effect they may have on that association or business.

5 0
3 years ago
During Bruce Company’s first year of operations, the company purchased $4,300 of supplies. At year-end, a physical count of the
seraphim [82]

Answer:

Supplies Used = $2475

Explanation:

<u>Bruce Company</u>

Supplies Purchases $4,300

Supplies on hand  $1,825

Supplies Used = $ 4300- $ 1825 = $2475

The amount of Supplies used ( $ 4300- $ 1825 = $2475) will be shown in the income statement as an expense and the amount of unused supplies or Supplies on hand $1,825 will be shown in the Balance sheet as an asset account. The both of which will total the supplies actually purchased.

The relating <u>adjusting entry </u>will be

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Supplies Account $ 2475 Credit

This means the supplies of the amount $ 2475 have been used and is recorded as an expense in the income statement. It will be deducted from the gross profit. The remaining amount $ 1825 is for future use so recorded as an asset in the Balance Sheet and added to the total assets.

6 0
3 years ago
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