Assume that the company estimates percentage complete based


At the beginning of 2012, Massachusetts Road Construction entered into a contract to build a road for the government. Construction will take 3 years. The following information as of December 31st, 2012 is available for the contract:

Total revenue according to contract   $15,000

Updated estimated cost in 2013-2014 period  $7,200,000

Cost incurred during 2012   $4,800,000

Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the Percentage-of-Completion method, how much revenue will be reported in 2012?

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Financial Management: Assume that the company estimates percentage complete based
Reference No:- TGS02862332

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