Queensbridge Corp

question 98

Essay

Queensbridge Corp. started a contract in June 2020 to build a bridge at a fixed price of $45 million. The bridge was to be completed by October 2022 at a total estimated cost of $35 million. Total cumulative costs incurred by the end of December 2020 and 2021 were $7 million and $24 million, respectively. Because of cost overruns in 2021, 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, 2020 and December 31, 2021.

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Definitions:

Migration patterns

The trends or movements of groups of people or animals from one location to another, often studied to understand reasons behind the movements and implications for both origin and destination areas.

Sanitation systems

Infrastructure and services designed to efficiently collect, treat, and dispose of human waste and wastewater to protect human health and the environment.

Nutritious food

Nutritious food refers to edibles that provide essential nutrients needed by the body for growth, maintenance, and proper functioning, including vitamins, minerals, proteins, and healthy fats.