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antoniya [11.8K]
3 years ago
6

Sunland Construction Company uses the percentage-of-completion method of accounting. In 2021, Sunland began work on a contract i

t had received which provided for a contract price of $31500000. Other details follow: 2021 Costs incurred during the year $15600000 Estimated costs to complete as of December 31 9600000 Billings during the year 13500000 Collections during the year 8900000 What should be the gross profit recognized in 2021
Business
1 answer:
Westkost [7]3 years ago
5 0

Answer:

$3900000

Explanation:

The gross profit is the difference between the revenue earned during the year and the cost of sales. The percentage of completion method is one in which the revenue is recognized based on the cost incurred to date on the project.

Revenue to be recognized in 2021

= $15600000/($15600000 + $9600000) * $31500000

= $19500000

Though the billings for the year is lower, the difference may be recognized as unbilled receivable.

As such, the gross profit for the year

= $19500000 - $15600000

= $3900000

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Mark avoids high-end brands as he considers them expensive. However, during one of his shopping trips, he notices that a luxury
balandron [24]

Answer:

<em>Just Meaningful Difference </em>

Explanation:

The Just meaningful difference , or simply JMD, Symbolizes the slightest amount of stimulation shift which would impact consumption and preference of consumers.

Example will include, when a price of a can of soda increases slightly from $2.36 to $3.28

8 0
3 years ago
A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to
MaRussiya [10]

Answer:

A) $24,602

Explanation:

We can solve this question by finding the periodic deposits needed by using the formula:

FV=PMT*\frac{(1+i)^n-1}{i}

where:

FV= future value   = $220,000

PMT = periodic deposits required = ???

i = effective  interest rate per period = 0.0331

n= number of deposits = 8

However, since the interest is compounded monthly, let's also  calculate the effective interest rate

Effective interest rate = (1+\frac{r}{m}) ^m-1

where; r = 12.5% = 0.125

(1+\frac{0.125}{12})^{12} -1

= 0.1324

Interest rate per period = \frac{0.1324}{4}

= 0.0331

Then;

220,000=PMT*\frac{(1+0.033)^8-1}{0.033}

220,000 = PMT × 8.986

PMT = \frac{220,000}{8.986}

PMT = $ 24,482.5

Since A) $24,602 is closer to $ 24,482.5

Therefore,  $ $24,602  must be deposited every three months

3 0
4 years ago
Krete is an unmarried taxpayer with income exclusively from wages. By December 31, year 1, Krete's employer has withheld $16,000
storchak [24]

Answer:

The answer is: $0

Explanation:

Krete would have been forced to pay a penalty only if her taxes due after withholdings were over $1,000 . Since she only owed $200 in taxes, she will not receive any penalty for underpayment. But she will still have to pay a penalty for not paying the $200 she owes (this is a separate penalty).

4 0
3 years ago
In one paragraph, list and describe the three major effects of inflation on the economy
Bess [88]
Historically, for domestic investors, a high inflation rate<span> has been considered anything over the 3% to 4% annual range with the 3% to 4% figure considered benign. This rate, which would be a godsend for most of the world, is caused by numerous things, some of which have to do with certain monetary and structural advantages in the U.S. economy that may not last indefinitely. That said, for the past decade, the country has experienced a historically low interest rate environment due to unprecedented intervention in the monetary system by the Federal Reserve and lawmakers as part of the efforts to stave off collapse of the global economic system back between 2007 and 2009 when the real estate bubble peaked and imploded, dragging down all sorts of </span>asset classes<span> with it, including the stock market.</span>
5 0
3 years ago
Which of the following should be included in the acquisition cost of a piece of equipment?
topjm [15]

Answer: All of these choices are correct.

Explanation:

You didn't give the options to the question. The options include:

testing costs prior to placing the equipment into production

transportation costs

installation costs

All of these choices are correct.

Acquisition cost, is the total cost that is recognized by a company on its books for the purchase of an asset. These costs include the transportation cost, installation cost, shipping cost, testing costs, sales taxes, customs fees, etc.

Therefore, based on the explanation, the correct option is All of the choices are correct.

6 0
3 years ago
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