How much gross profit should camey recognize in year one

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Question - Camey Construction enters into a long - term fixed price contract to build an office building for $5,000,000. In the first year of the contract Carney incurs $1,300,000 of cost and the engineers determined that the remaining costs to complete the project are $2,500,000. Carney billed $2,000,000 and collected $800,000 in year 1. Refer to Camey Construction. How much gross profit should Camey recognize in Year 1 assuming the use of the percentage of completion method?

Reference no: EM133173522

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