Question - Intermediate Accounting: Reporting and Analysis (with The FASB's Accounting Standards Codification: A User-Friendly Guide), 1st Edition.
Forman Company has contracted to build a dam over a period of 4 years for $3,000,000. Information relating to the performance of the contract is summarized as follows:
1. a. Compute the profit or loss for each year of the contract under the percentage-of-completion method.
b. Compute the profit or loss for each year of the contract under the completed-contract method.
2. a. Prepare the relevant sections of the income statement for each year under the percentage-of-completion method.
b. Prepare the relevant sections of the income statement for each year under the completed-contract method.