Revenue Gross profit (loss) GA S Answer is not complete. 2025 2024 2,800,000 2026

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
Problem 88P
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In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2026. Information related to the contract is as follows:
Problem 6-10 (Algo) Part 4
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
Westgate recognizes revenue over time according to percentage of completion.
Costs incurred during the year
Estimated costs to complete as of year-end
Revenue
Gross profit (loss)
S
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs
incurred and costs to complete information.
2024
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.
Answer is not complete.
2024
$ 2,184,000
5,616,000
2,120,000
1,860,000
2,800,000
2025
2025
$ 3,510,000
2,106,000
3,574,000
3,400,000
2026
2024
$ 2,184,000
5,616,000
2026
$ 2,316,600
2025
$ 3,860,000
3,160,000
4,306,000
4,740,000
0
2026
$ 3,260,000
0
Transcribed Image Text:In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: Problem 6-10 (Algo) Part 4 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) S 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. 2024 Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. Answer is not complete. 2024 $ 2,184,000 5,616,000 2,120,000 1,860,000 2,800,000 2025 2025 $ 3,510,000 2,106,000 3,574,000 3,400,000 2026 2024 $ 2,184,000 5,616,000 2026 $ 2,316,600 2025 $ 3,860,000 3,160,000 4,306,000 4,740,000 0 2026 $ 3,260,000 0
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