Creation Construction Company (CCC)has Contracted to Build an Office Building

question 84

Essay

Creation Construction Company (CCC)has contracted to build an office building for Property Corp. The construction started on January 1, 2012, and the project was completed on July 1, 2015. The contract price was $70 million. Due to uncertainties in the construction process, the two parties to the project agreed to a risk-sharing arrangement whereby Property Corp. covers 50% of all cost overruns in excess of the originally estimated cost of $65 million (e.g., if estimated total costs are $69 million, then CCC would receive an additional $2 million for the contract). The following data relate to the construction period.
Required:
Calculate the estimated gross profit (loss)for 2012, 2013, 2014, and 2015, assuming that the percentage of completion method is used.

---

Definitions:

Prison Population Rate

A measure of the number of individuals imprisoned per 100,000 of the national population, indicating the level of reliance on incarceration.

Sex Registration Laws

Legal requirements for individuals convicted of sex crimes to register their addresses and other personal information with local law enforcement.

Immigrant Prosecutions

Legal actions taken against individuals for violations related to their immigration status, often in the context of unauthorized entry or stay in a country.

Border Patrol

Government agents tasked with monitoring and securing a country’s borders to prevent illegal immigration and trafficking.