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Question - McCombs Contractors received a contract to construct a building for a price of $ 700,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows:
2017
2018
Costs incurred during the year
150,000
242,000
Estimated costs to complete
350,000
168,000
Billings during the year
120,000
250,000
Cash collections during the year
100,000
260,000
Required: Compute the amount of gross profit recognized during 2017 and 2018.
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