Haft Construction Company has consistently applied the percentage-of-completion method. On January 10, 2014, Haft began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract:
Gross profit recognized on 12/31/14 ……… $ 300,000Costs incurred 1/01/14 through 12/31/15 ……. 1,800,000Estimated cost to complete on 12/31/15 ……… 600,000Required: In its income statement for the year ended December 31, 2015, what amount of gross profit should Haft report? Get Accounting Help Today
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