How much gross profit would be recognized

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Reference no: EM132699699

Question - Pool Contractors (PC) entered into a contract to build a solar heated swimming complex for $1,800,000. Construction commenced on July 1, 2020, with a planned completion date of December 31, 2022. A summary of the related accounting information is provided below:

	2020	2021	2022
Costs incurred during the year	$400,000	$500,000	$650,000
Estimated costs to complete at year-end	1,200,000	600,000	0
Billings during the year	560,000	640,000	600,000
Cash collections during the year	500,000	310,000	990,000

Required - How much gross profit would be recognized in fiscal 2021 if PC uses the percentage of completion method?

Reference no: EM132699699

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