wynn inc has a agreement to construct a large


Wynn, Inc. has a agreement to construct a large hotel for $12,000,000. The contract was signed on 2nd January, 2010 and it was expected that the hotel would be complete on 31st December, 2013. At the date the contract was signed, Wynn, Inc. anticipated the costs of construction would total $11,000,000. At the end of 2011 the costs incurred were $3,490,000 and its approximation of total contract costs rose to $11,870,000. Through 2012, the company incurred costs of $4,020,000 and by the end of 2012 the total cost estimate rose to $12,400,000. Due to certain circumstances, Wynn, Inc. believes there are inherent hazards in contract beyond the normal, recurring business risks. Wynn, Inc. expects to recover all its costs under contract. Under these conditions, what amount of revenue should Wynn, Inc. identify in each of the following years?

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Financial Accounting: wynn inc has a agreement to construct a large
Reference No:- TGS0483898

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