Beck Construction Company began work on a new building project on January 1, 2023. The project is to be completed by December 31, 2025, for a fixed price of $131 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff: Years Actual costs incurred in each year Estimated remaining costs to complete the project (measured at December 31 of each year)
Beck Construction Company began work on a new building project on January 1, 2023. The project is to be completed by December 31, 2025, for a fixed price of $131 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff: Years Actual costs incurred in each year Estimated remaining costs to complete the project (measured at December 31 of each year)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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21
Beck Construction Company began work on a new building project on January 1, 2023. The project is to be completed by December 31, 2025, for a fixed price of $131 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff:
| Years | Actual costs incurred in each year | Estimated remaining costs to complete the project (measured at December 31 of each year) |
|---|---|---|
| 2023 | $ 36 million | $ 72 million |
| 2024 | $ 57 million | $ 57 million |
| 2025 | $ 41 million | $ 0 million |
Required:
What amount of gross profit (or loss) would Beck record on this project in each year, assuming that Beck recognizes revenue for this project upon completion of the project?
Transcribed Image Text:Years
2023
2024
2025
Gross Profit (or Loss) recognized
million
million
million
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