Grandon Ltd. began work in 2007 on a contract for $5,400,000. Other data are:$\begin{array} { | l | l | l | }
\hline & 2006 & 2007 \
\hline \text { Costs to date } & \$ 1,800,000 & \$ 4,300,000 \
\hline \text { Estimated costs to complete } & 2,700,000 & \
\hline \text { Billings to date } & 2,000,000 & 5,400,000 \
\hline \text { Collections to date } & 1,600,000 & 4,600,000 \
\hline
\end{array}$Assuming Grandon uses the completed contract method, calculate the gross profit to be recognized in 2008.

Question

Grandon Ltd. began work in 2007 on a contract for $5,400,000. Other data are:$\begin{array} { | l | l | l | } 
\hline & 2006 & 2007 \
\hline \text { Costs to date } & \$ 1,800,000 & \$ 4,300,000 \
\hline \text { Estimated costs to complete } & 2,700,000 & \
\hline \text { Billings to date } & 2,000,000 & 5,400,000 \
\hline \text { Collections to date } & 1,600,000 & 4,600,000 \
\hline
\end{array}$Assuming Grandon uses the completed contract method, calculate the gross profit to be recognized in 2008.

Quizplus · Accepted Answer

The Answer of Grandon Ltd. began work in 2007 on a contract for $5,400,000. Other data are:$\begin{array} { | l | l | l | } 
\hline & 2006 & 2007 \
\hline \text { Costs to date } & \$ 1,800,000 & \$ 4,300,000 \
\hline \text { Estimated costs to complete } & 2,700,000 & \
\hline \text { Billings to date } & 2,000,000 & 5,400,000 \
\hline \text { Collections to date } & 1,600,000 & 4,600,000 \
\hline
\end{array}$Assuming Grandon uses the completed contract method, calculate the gross profit to be recognized in 2008.

Grandon Ltd Assuming Grandon Uses the Completed Contract Method, Calculate the Gross