Use the Following to Answer Questions

question 94

Essay

Use the following to answer questions
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000.The project was begun in 2015 and completed in 2016.Cost and other data are presented below:

-Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.Required: Compute the amount of gross profit recognized during 2015 and 2016.

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Definitions:

Delegable Duty

A responsibility or duty that can be transferred or assigned from one party to another, often seen in contexts of employment or contractual agreements.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, although the benefit was not the reason the contract was formed.

Donee Beneficiary

A third party who benefits from a contract made between two other parties, particularly where the contract's intent is to gift something to the beneficiary.

Creditor Beneficiary

A third party that benefits from a contract in which one party promises to pay a debt owed to the third party by the other contract party.