Queensbridge Corp

question 96

Essay

Queensbridge Corp.started a contract in June 2017 to build a bridge at a fixed price of $45 million.The bridge was to be completed by October 2019 at a total estimated cost of $35 million.Total cumulative costs incurred by the end of December 2017 and 2018 were $7 million and $24 million,respectively.Because of cost overruns in 2018,it is now expected that the project will cost $5,000,000 more than originally estimated.Final costs at the end of the project totaled $36 million.Queensbridge Corp.follows the guidance in IFRS.
Required:
Determine the amount of gross profit to be recognized for the years ended December 31,2017 and December 31,2018.

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Definitions:

Diffusion

The movement of molecules or particles from an area of higher concentration to one of lower concentration until equilibrium is reached.

Aerobic Cellular Respiration

Aerobic cellular respiration is a metabolic process where cells convert biochemical energy from nutrients into adenosine triphosphate (ATP), using oxygen as the electron acceptor.

Catabolism

The aspect of metabolism in which complex substances are broken down to form simpler substances; catabolic reactions are particularly important in releasing chemical energy stored by the cell. Compare with anabolism.

Anabolism

The aspect of metabolism in which simpler substances are combined to form more complex substances, resulting in the storage of energy, the production of new cell materials, and growth. Compare with catabolism.