Percentage of Completion Newberg Construction Corporation contracted to construct a building for $400,000. Construction began in 2007 and was completed in 2008. Data relating to the contract are as follows:
|
Year Ended December 31, |
||
|
2007 |
2008 |
|
|
Costs incurred |
$200,000 |
$110,000 |
|
Estimated costs to complete |
100,000 |
— |
Required
Newberg uses the percentage of completion method as the basis for income recognition. For the years ended December 31, 2007 and 2008, respectively, how much income should Newberg report?