Assume the Following Facts for a Construction Contract That Was

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The Answer is a. The question only asks for the gross profit or loss, so we can simply apply the normal formulas. Note: Normal circumstances (2011, 2013, 2014)and expected loss on the contract (2012).

a. The question only asks for the gross profit or loss, so we can simply apply the normal formulas. Note: Normal circumstances (2011, 2013, 2014)and expected loss on the contract (2012). b. For the completed contract method, no profit is recognized until the end of the contract. However, any expected losses are recognized in their entirety in the year anticipated. The gross profits (losses)for the four years are shown in the following table. It is important to note that the loss is not reversed in 2013 when the project becomes profitable again-all profits are deferred to the date of contract completion.

b. For the completed contract method, no profit is recognized until the end of the contract. However, any expected losses are recognized in their entirety in the year anticipated. The gross profits (losses)for the four years are shown in the following table. It is important to note that the loss is not reversed in 2013 when the project becomes profitable again-all profits are deferred to the date of contract completion.

Assume the Following Facts for a Construction Contract That Was

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