The city of gunnison awarded a 5000000 road-construction, Ask an Expert

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The City of Gunnison awarded a $5,000,000 road-construction contract to the Fast Builders Construction Company. Construction was expected to take three years. After one year, Fast Builders had incurred $625,000 of cost and was approximately 20% completed with the road. The company estimated that another $2,500,000 would be expended to complete the contract. The company is confident regarding its estimates. What amount of profit, if any, should Fast Builders recognize for the first year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9968702

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