Solution-Calculation of profit using completed contract

Calculation of profit using completed contract method

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Reference no: EM13884767

Problem-

Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows:

	2012	2013
Costs incurred to date	$5,400,000	$8,400,000
Estimated costs to complete	3,600,000

Billings to date	4,200,000	12,600,000
Collections to date	3,000,000	10,800,000

Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows:

If Kiner uses the completed-contract method, the gross profit to be recognized in 2013 is

a. $2,040,000.

b. $4,200,000.

c. $2,100,000.

d. $8,400,000.

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This problem related to Basics Accounting and calculation of profit using completed contract method.

Reference no: EM13884767

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Calculation of profit using completed contract method : Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows: This problem related to Basics Accounting and calculation of profit using completed contract method

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Calculation of profit using completed contract method

Reference no: EM13884767

Reference no: EM13884767

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