Reference no: EM132759813
OBET Construction and Development Corporation OCDC was contracted to construct a 50-floor building with a contract price of $25,200,000 on January 1,2014.
At the beginning of 2015, the building was still in process and had the status of construction as follows:
Cost incurred up to January 1, 2015 (including $200,000 worth of materials stored at the construction site but to be used in 2016 for the completion of the project) 5,700,000
Estimated cost to complete 16,300,000
As of the end of 2015, the following data were obtained with respect to the same building:
Cost Incurred 12,200,000
Estimated cost to complete, December 31,205 7,800,000
Cost Incurred during 2016, the last year construction 8,000,000
Problem 1: What is the correct realized gained profit in 2015 using percentage of completion?