Brutus Construction started work on a new high rise building on January 1, 2019. The project completion date is December 2021. The contract price is $54,000,000. The following are the actual costs incurred and estimates of costs to complete the project.
$$\begin{array} { c c c }
\text { Years } & \text { Actual costs incurred } & \text { Estimated costs to complete } \
2019 & \$ 15,000,000 & \$ 30,000,000 \
2020 & 22,500,000 & 22,500,000 \
2021 & 17,500,000 & - 0 -
\end{array}$$
Calculate gross profit or loss for each year using the completed-contract method.

Question

Brutus Construction started work on a new high rise building on January 1, 2019. The project completion date is December 2021. The contract price is $54,000,000. The following are the actual costs incurred and estimates of costs to complete the project.
 $$\begin{array} { c c c } 
\text { Years } & \text { Actual costs incurred } & \text { Estimated costs to complete } \
2019 & \$ 15,000,000 & \$ 30,000,000 \
2020 & 22,500,000 & 22,500,000 \
2021 & 17,500,000 & - 0 -
\end{array}$$ 
Calculate gross profit or loss for each year using the completed-contract method.

Quizplus · Accepted Answer

The Answer of Brutus Construction started work on a new high rise building on January 1, 2019. The project completion date is December 2021. The contract price is $54,000,000. The following are the actual costs incurred and estimates of costs to complete the project.
 $$\begin{array} { c c c } 
\text { Years } & \text { Actual costs incurred } & \text { Estimated costs to complete } \
2019 & \$ 15,000,000 & \$ 30,000,000 \
2020 & 22,500,000 & 22,500,000 \
2021 & 17,500,000 & - 0 -
\end{array}$$ 
Calculate gross profit or loss for each year using the completed-contract method.

Brutus Construction Started Work on a New High Rise Building