At the beginning of 2017 Premier Yachts enters into a contract to build a luxury yacht for a customer that is expected to take three years to complete.The contract price is $12,000,000.Completion is scheduled for the end of 2019.Premier's year end is December 31.The following is a year by year summary of construction costs incurred and the estimated costs to complete the projects at the end of each year.
Required: Calculate the gross profit for each year assuming the percentage of completion method is used.

Question

At the beginning of 2017 Premier Yachts enters into a contract to build a luxury yacht for a customer that is expected to take three years to complete.The contract price is $12,000,000.Completion is scheduled for the end of 2019.Premier's year end is December 31.The following is a year by year summary of construction costs incurred and the estimated costs to complete the projects at the end of each year.
  Required: Calculate the gross profit for each year assuming the percentage of completion method is used.

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The Answer of At the beginning of 2017 Premier Yachts enters into a contract to build a luxury yacht for a customer that is expected to take three years to complete.The contract price is $12,000,000.Completion is scheduled for the end of 2019.Premier's year end is December 31.The following is a year by year summary of construction costs incurred and the estimated costs to complete the projects at the end of each year.
  Required: Calculate the gross profit for each year assuming the percentage of completion method is used.

At the Beginning of 2017 Premier Yachts Enters into a Contract