long-term_contracts - The company estimates the percent...

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Topic: Long-term construction contracts The Calder Company is engaged in the construction of a dam that takes 3 years to complete. The costs incurred to date, estimated costs to complete, and collections are shown below: 2010 2011 2012 Actual costs incurred 100,000 186,000 314,000 Estimated costs to complete 400,000 264,000 -- Collections from customer 50,000 330,000 320,000 Total contract price is $700,000.
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Unformatted text preview: The company estimates the percent complete by the cost-to-cost method (cumulative costs/total costs). Required: 1. What amount of income (or loss) should Calder report on their tax return in 2010, 2011 and 2012 under the completed contract method? 2. What amount of income (or loss) should Calder report on their tax return in 2010, 2011 and 2012 under the percentage of completion method?...
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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