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Question - On January 1, 2020, Red Sox Construction Ltd. started a construction project for $4,500,000. Relevant data for 2020 and 2021 are as follows:
2020
2021
Current year construction costs
$3,300,000
$620,000
Estimated remaining costs to complete
600,000
-0-
Current year billings
3,100,000
1,400,000
Current year collections
3,000,000
1,050,000
Required - Calculate the following amounts using the percentage of completion method. Please round all your answers to the nearest dollar:
What the amount of revenue recognized using the percentage completion method for 2020 and 2021.
What the amount of gross profit for 2020 and 2021.
What the year-end balance of Construction Contract Asset (Liability) for 2020 and 2021.
What the year-end balance of Accounts Receivable for 2020 and 2021.
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