On December 31, 2017, Tri-State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. State anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
During the three-year construction period, Tri-State incurred costs as follows:
Compute the revenue recognized, construction costs expensed, and income earned for each year using the cost-to-cost method.

Question

On December 31, 2017, Tri-State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. State anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
  During the three-year construction period, Tri-State incurred costs as follows:
  Compute the revenue recognized, construction costs expensed, and income earned for each year using the cost-to-cost method.

Quizplus · Accepted Answer

The Answer of On December 31, 2017, Tri-State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. State anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
  During the three-year construction period, Tri-State incurred costs as follows:
  Compute the revenue recognized, construction costs expensed, and income earned for each year using the cost-to-cost method.