(Answered) Question recognition of profit on long-term contracts

Accounting

Question: (Recognition of Profit on Long-Term Contracts) During 2014, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2016. The following information is available.

(a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

(b) Prepare all necessary journal entries for 2015.

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