1. (TCO A) Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant:Total Construction Fixed Price $8,000,000Construction Start Date March 3, 2012Construction Complete Date December 4, 2013As of Dec 31â¦ 2012 2013Actual cost incurred $2,500,000 $3,150,000Estimated remaining costs $3,750,000 $-Billed to customer $2,400,000 $5,300,000Received from customer $2,250,000 $5,400,000Assuming Platypus Building Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?1. $2,000,0002. $2,350,0003. $1,650,0004. $940,0002. (TCO A) Kerry Corp purchased a used bottling machine from Bob’s Bottling Inc. on Jan 1, 2012 for $2100000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $1575000. Kerry paid with $300000 cash and a note for $1800000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $600000. Kerry Corp made their first payment on Jan 1, 2013 of $780000 which included interest of $180000 to date of payment.As of Dec 31, 2013 Bob has deferred gross profit of ?1. $255,0002. $330,0003. $375,0004. $300,0003. (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $800000. Additional information was provided:As of Dec 31â¦. 2012 2013Percentage of completion 15% 40%Estimated total expected costs $550,000 $580,000Gross profit recognized (Cumulative) $50,000 $99,000Contracted costs incurred during 2013 wereâ¦ (Points : 5)1. $145,0002. $149,5003. $151,0004. $232,0004. (TCO A) In industries with high rates of return (such as a magazine distribution company) an alternative method of revenue recognition would beâ¢ record sales net of an estimate of expected future returnsâ¢ record sales in current period and returns in future periods as they occurâ¢ do not record any sales until expiration of all return privileges have passedâ¢ all of the above
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