Calculation of profit using completed contract method

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Reference no: EM13884767

Problem-

Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows:

 

2012

2013

Costs incurred to date

$5,400,000

$8,400,000

Estimated costs to complete

3,600,000

 

 

 

 

Billings to date

4,200,000

12,600,000

Collections to date

3,000,000

10,800,000

Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows:

If Kiner uses the completed-contract method, the gross profit to be recognized in 2013 is

a. $2,040,000.

b. $4,200,000.

c. $2,100,000.

d. $8,400,000.

Additional information-

This problem related to Basics Accounting and calculation of profit using completed contract method.

Reference no: EM13884767

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