Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three year contract period:
Under the percentage of completion method, how much profit should Carbon recognize in year 1?
|
Year |
Payments |
Expenses |
|
1 |
$ 400,000 |
$300,000 |
|
2 |
$1,200,000 |
$900,000 |
|
3 |
$ 400,000 |
$550,000 |