Queensbridge Corp

question 86

Essay

Queensbridge Corp. started a contract in June 2011 to build a bridge at a fixed price of $45 million. The bridge was to be completed by October 2013 at a total estimated cost of $35 million. Total cumulative costs incurred by the end of December 2011 and 2012 were $7 million and $24 million, respectively. Because of cost overruns in 2012, 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, 2011 and December 31, 2012.

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Definitions:

Conditioned Reinforcer

A stimulus that has acquired the capacity to reinforce behaviors through its association with a primary reinforcer.

Applause

The act of clapping hands together to show appreciation, approval, or enjoyment, typically in response to a performance or speech.

Piano Recital

A performance event where pianists showcase their skill by playing music in front of an audience.

Operant Behavior

a type of learning where behavior is controlled by consequences, including rewards for reinforcement or punishment to decrease a behavior.