Brutus Construction Started Work on a New High Rise Building

question 132

Essay

Brutus Construction started work on a new high rise building on January 1,2016,The project completion date is December 2018.The contract price is $54,000,000.The following are the actual costs incurred and estimates of cost to complete the project.
Calculate gross profit or loss for each year using the completed-contract method.

---

Definitions:

Marginal Social Benefit

The additional benefit to society resulting from the production or consumption of one more unit of a good or service.

Pollution

The contamination of the natural environment by harmful substances or energies, often resulting from human activities.

Efficient

The condition in which resources are allocated in a way that maximizes the net benefit to society or achieves an optimal outcome where no one can be made better off without making someone else worse off.

Beneficiaries

Individuals or groups that receive benefits or advantages from something, especially from a trust, insurance policy, or will.