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Question- ?Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2017, Hamilton began work under contract A01, which provided for a contract price of $2,000,000. Other details follow:
2017
2018
Costs incurred during the year
$600,000
?$1,000,000
Estimated costs to complete, as of December 31
960,000
-0-
Billings to date
? ???? 900,000
2,000,000
Collections during the year????
750,000
1,250,000
Required -
(a) What portion of the total contract price would be recognized as revenue in 2017? In 2018?
(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2017?
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