Assume that Arena Corp. has agreed to construct a new basketball arena for Hoop Town for $70 million dollars. Construction of the new arena begins in July, 2007 and is expected to be completed in March 2009. At the signing of the contract Arena Corp. estimates that the new arena will cost $60 million dollars to build. Given the following cost and building schedule determine the cumulative degree of completion and how much revenue and gross margin Arena Corp. should recognize in years 2007, 2008 and 2009.

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The Answer of Assume that Arena Corp. has agreed to construct a new basketball arena for Hoop Town for $70 million dollars. Construction of the new arena begins in July, 2007 and is expected to be completed in March 2009. At the signing of the contract Arena Corp. estimates that the new arena will cost $60 million dollars to build. Given the following cost and building schedule determine the cumulative degree of completion and how much revenue and gross margin Arena Corp. should recognize in years 2007, 2008 and 2009.

Assume That Arena Corp