Long-contract to build a new sports arena


Chimizo Inc. has signed a long-contract to build a new sports arena. The total revenue related to the contract is $750 million. Estimated costs for building the arena are $245 million in the first year and $175 million in both the second and third year. The costs incurred in the first year is $225 million. The costs cannot be reasonably estimated. How much revenue should Green Co. report in their first year under iGAAP?

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Accounting Basics: Long-contract to build a new sports arena
Reference No:- TGS055706

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