A Construction Firm Enters a Long-Term Contract to Build a Bridge.The

question 12

Short Answer

A construction firm enters a long-term contract to build a bridge.The expected and actual cash receipts and disbursements for the project are as follows:
$\begin{array}{lll}\text { Period } & \text { Receipts } & \text { Expenditures }\\1 & \$ 1,000 & \$ 4,000 \\2 & 2,000 & 2,000 \\3 & 3,000 & 1,000 \\4 & 4,000 & 1,000\end{array}$ Required:
What is the income before taxes during each of the following periods under each of the specified methods of revenue recognition?
$\begin{array}{lll} &\text { Period }&\text { Method }\\\text { a. } & 1 & \text { Completed Contract } \\\text { b. } & 4 & \text { Completed Contract } \\\text { c. } & 1 & \text { Percentage of Completion } \\\text { d. } & 4 & \text { Percentage of Completion } \\\text { e. } & 1 & \text { Installment Method } \\\text { f. } & 4 & \text { Installment Method } \\\text { g. } & 1 & \text { Cost Recovery First } \\\text { h. } & 4 & \text { Cost Recovery First }\end{array}$

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Definitions:

Unconscious Memories

Memories that are not within an individual's conscious awareness, often influencing behaviors and decisions without one's realization.

Family Stories

Narratives passed down within families that recount historical events, personal experiences, or cultural traditions, contributing to a shared identity.

Imagination

The ability of the mind to create images, scenarios, or concepts of things that are not present to the senses.

Parallel Distributed Processing

A computational approach in cognitive science, suggesting that information processing occurs through networks of interconnected nodes, simulating neural networks.