In 2015,Cashmere Construction Company Enters into a Contract to Build

In 2015,Cashmere Construction Company enters into a contract to build a beach cottage for Martha and Rob for a total price of $500,000.Cashmere estimates the total cost to complete the cottage to be $400,000.In 2015,Cashmere incurred $300,000 of costs on the contract,and in 2016 the contract was completed at a total cost of $425,000.Cashmere is not required to recognize any income from the contract until 2016.