Use the Following Information for Questions

question 288

Short Answer

Use the following information for questions. In 2014, Violin Inc.began a three year construction contract for $7,000,000.Violin uses the percentage-of-completion method.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial statement presentation relating to this contract for calendar 2014 follow:
-Cornet Construction Corp.uses the percentage-of-completion method.In 2014, Cornet began work on a contract for $1,650,000 which was completed in 2015.Data on the costs are:

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Definitions:

Price

The amount of money required to purchase a good or service, determined by factors such as demand, supply, and production cost.

Law Of Demand

The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises

Price

The monetary value assigned to a product or service, determined by various factors including supply and demand, production cost, and market competition.

Quantity

The amount or number of a material or immaterial good that can be measured or counted.