Percentage-Of-Completion Method Robin Builders Ltd

question 312

Essay

Percentage-of-completion method Robin Builders Ltd.contracted to build a high-rise for $6,000,000.Construction began in 2014 and is expected to be completed in 2017.Data for 2014 and 2015 are: Instructions Using the percentage-of-completion method and the cost-to-cost basis,
a)How much gross profit should be reported for 2014? Show your calculation.
b)How much gross profit should be reported for 2015? Show your calculation.
c)Prepare the journal entry to record the revenue and gross profit for 2015.

Comprehend the differences and applications of discounted cash flow (DCF) analysis versus accrual accounting in evaluating capital investments.

Recognize the critical factors that influence capital expenditure decisions, including market conditions, competitor reactions, and economic trends.

Understand the tax implications of asset disposal and how depreciation methods affect tax calculations.

Identify the limitations of the payback method and how it ranks investment proposals.

---

Definitions:

Eyes

Organs of vision that detect light and convert it into electro-chemical impulses in neurons, facilitating sight.

Chronic Pain

Prolonged pain.

Phantom Pain

A sensation of pain that feels like it's coming from a part of the body that's no longer there, often experienced after limb amputation.

Referred Pain

A pain perceived at a location other than the site of the painful stimulus, due to the network of interconnecting sensory nerves.