In 2017,Modern Construction Company Entered into a Contract to Construct

question 22

Essay

In 2017,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 2018.Modern incurred actual construction costs of $1,600,000 and $1,800,000 in 2017 and 2018,respectively.How much gross profit is recognized using the percentage-of-completion method in 2017 and 2018?

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Definitions:

Carbon-Rich Remains

Organic material that has a high carbon content, often found in fossils or peat, resulting from the decomposition of living organisms.

Natural Gas

A fossil fuel consisting primarily of methane, used as an energy source for heating, cooking, and electricity generation.

Autotrophic

Referring to organisms that can produce their own food from inorganic substances using light or chemical energy, such as plants and some bacteria.

Heterotrophic

Organisms that obtain their energy by consuming other living or dead organisms.