Brady Construction Company contracted to build an apartment complex for a price of $6,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred during Year 2025 $ 2,550 Estimated Costs to Complete (As of the End of the Year) 2024 2026 $ 3,870 Situation 2024 1 2 $ 1,640 1,640 2026 $ 1,320 2025 $ 1,320 1,320 2,960 3,870 2,960 3 1,640 2,550 2,720 3,870 2,620 4 640 3,140 1,280 4,480 945 5 640 3,140 2,280 4,480 2,620 6 640 3,140 3,200 5,955 2,960 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.
Brady Construction Company contracted to build an apartment complex for a price of $6,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred during Year 2025 $ 2,550 Estimated Costs to Complete (As of the End of the Year) 2024 2026 $ 3,870 Situation 2024 1 2 $ 1,640 1,640 2026 $ 1,320 2025 $ 1,320 1,320 2,960 3,870 2,960 3 1,640 2,550 2,720 3,870 2,620 4 640 3,140 1,280 4,480 945 5 640 3,140 2,280 4,480 2,620 6 640 3,140 3,200 5,955 2,960 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 6-23 (Algo) Income (loss) recognition; Long-term contract; revenue recognition over time vs.
upon project completion [LO6-9]
Brady Construction Company contracted to build an apartment complex for a price of $6,400,000. Construction began in 2024 and
was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the
project. All costs are stated in thousands of dollars.
Costs Incurred during Year
Estimated Costs to Complete
(As of the End of the Year)
2024
2026
$ 3,870
Situation
1
2024
$ 1,640
2025
$ 2,550
2026
$ 1,320
2025
$ 1,320
23456
1,640
1,320
2,960
3,870
2,960
1,640
2,550
2,720
3,870
2,620
640
3,140
1,280
4,480
945
640
3,140
2,280
4,480
2,620
640
3,140
3,200
5,955
2,960
Complete the following table.
Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400
thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be
indicated by a minus sign.
Required:
Gross Profit (Loss) Recognized
Situation
2024
Revenue Recognized Over Time
2025
2026
2024
Revenue Recognized Upon Completion
2025
2026
1
23
4
5
6](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb1f7588-e7d5-4669-93fb-38f498dfa5f2%2F702e2f06-644c-4cbc-b95a-5dc9a24f8f60%2Fbj8sgq_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 6-23 (Algo) Income (loss) recognition; Long-term contract; revenue recognition over time vs.
upon project completion [LO6-9]
Brady Construction Company contracted to build an apartment complex for a price of $6,400,000. Construction began in 2024 and
was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the
project. All costs are stated in thousands of dollars.
Costs Incurred during Year
Estimated Costs to Complete
(As of the End of the Year)
2024
2026
$ 3,870
Situation
1
2024
$ 1,640
2025
$ 2,550
2026
$ 1,320
2025
$ 1,320
23456
1,640
1,320
2,960
3,870
2,960
1,640
2,550
2,720
3,870
2,620
640
3,140
1,280
4,480
945
640
3,140
2,280
4,480
2,620
640
3,140
3,200
5,955
2,960
Complete the following table.
Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400
thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be
indicated by a minus sign.
Required:
Gross Profit (Loss) Recognized
Situation
2024
Revenue Recognized Over Time
2025
2026
2024
Revenue Recognized Upon Completion
2025
2026
1
23
4
5
6
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