POC company accounts for a long-term construction contract using percentage - of - completion method . As of the end of the current fiscal year, the following information was available regarding a project expected to be completed in the following year:
Cumulative progress billings: $400,000
Cumulative Costs Incurred: 300,000
Cumulative Gross Profit Recognized: 80,000
The difference between construction in progress and progress billings should be reported in the statement of financial position for the current year as.