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Question - Syl Company during 1993:
Total contract price $100,000
Actual costs during 1993 20,000
Estimated remaining costs 40,000
Billed to customer during 1993 30,000
Received from customer during 1993 10,000
Under the completed contract method, how much should Syl recognize as gross profit for 1993?
a. $0
b. $4,000
c. $10,000
d. $12,000
Under the percentage-of completion method, how much should Syl recognize as gross profit for 1993?
b. $13,333
c. $26,667
d. $33,333
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