User Account

All Pages

What amount will be debited to construction in process

Assignment Help Financial Accounting
Reference no: EM132708708

Cullumber Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the percentage-of-completion method.

The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below.

                                                       2019               2020              2021
Completed contract                  $510000       $336000      $162000
Percentage-of-completion           810000          423000       330000

Problem 1: What amount will be debited to Construction in Process account, to record the change at beginning of 2021?

Option 1: $162000

Option 2: $213000

Option 3: $87000

Option 4: $387000

Reference no: EM132708708

Questions Cloud

Explain the nature of the gain : Maria meets all of the requirements of § 1237 (subdivided realty). Explain the nature of the gain (i.e., ordinary income or capital gain).
What is the warranty expense : One Company sells 500 laptop computers in 20X9 for $100,000 each. In 20X9, the company actually incurs warranty cost of $1,000,000. What is the warranty expense
What the amount that sunland should record as depreciation : On January 1, 2019, Sunland Corporation acquired machinery, What the amount that Sunland should record as depreciation expense for 2022 is?
Prepare journal entries for the transactions occurred : Prepare journal entries for the transactions occurred in 2017 and make the appropriate entry to apply the fair market valuation for these investments
What amount will be debited to construction in process : Cullumber Inc., a real estate developing company, What amount will be debited to Construction in Process account, to record the change at beginning of 2021?
What is the labor rate variance : The job was completed in 540 hours and the average actual labor rate was $18.20 per hour. What is the labor rate variance
Find what is the amount of depreciation expense on machine : Find what is the amount of depreciation expense on this machine that should be charged in Carla Vista's income statement for the year ended December 31, 2022?
Prepare an accrual-based income statement for racey : Racey had accounts receivable of $19,100 and accounts payable of $17,780. Prepare an accrual-based income statement for Racey
How much do need to deposit at the beginning of sixty years : How much do you need to deposit at the beginning of each of the next 60 years to pay for the plot if you can earn 11% on your deposit?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd