In 2018, Modern Construction Company Entered into a Contract to Construct

question 899

Essay

In 2018, Modern Construction Company entered into a contract to construct a building for $5,000,000. The estimated cost to complete the building is $4,000,000 and the project will be completed in 2019. Modern incurred actual construction costs of $1,600,000 and $1,800,000 in 2018 and 2019, respectively. How much gross profit is recognized using the percentage- of- completion method in 2018 and 2019?

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Definitions:

Electrostatic Discharge

The sudden flow of electricity between two electrically charged objects caused by contact, an electrical short, or dielectric breakdown.

DC Motors

Electric motors that run on direct current electricity, commonly used in various applications from small toys to large vehicles.

Relays

Electrically operated switches used to control circuits.

Fretting

Wear at the contact surfaces of two materials that occurs from repeated cyclical motion or vibration, often seen in electrical connections.