How much revenue and gross profit or loss recognize

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Exercise - Long-term contract; revenue recognition upon completion

A construction company entered into a fixed-price contract to build an office building for $22 million. Construction costs incurred during the first year were $6 million and estimated costs to finish at the end of the year were $9 million.

The building was completed during the second year. Construction costs incurred during the second year were $10 million.

How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue upon contract completion?

Reference no: EM132723035

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