Compute the amount of revenue Beavis would recognize in 2010 assuming that

# Compute the amount of revenue beavis would recognize

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Compute the amount of revenue Beavis would recognize in  2010assuming that Beavis uses the percentage-of-completion method. 4.Compute the amount of revenue Beavis would recognize in  2010assuming that Beavis uses the completed contract method.5.Assuming that Beavis uses the percentage-of-completion method, what amounts and account titles would Beavis report in its 2010 balance sheet related to this contract? Do not worry about cash.Use the next page for your answers!!!PROBLEM # 3 (ANSWERS)4
1.2.3.30% x \$1,800,000= \$540,0004. – 0 -5. Accounts receivable \$100,000Costs plus profits in excess of billings140,000(\$450,000 + 90,000 – 400,000)5
PROBLEM # 4On November 1, 2011, Jamison Inc. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2012. On December 31, 2011, the company's year-end, the following information relative to the discontinued division was accumulated:Operating loss January 1-December 31, 2011\$65 millionEstimated operating losses, Jan. 1 to April 30, 201280 millionExcess of fair value, less costs to sell, over book value at December 31, 2011 15 millionIn its income statement for the year ended December 31, 2011, what amount would Jamison report as the before-tax loss on discontinued operations? Show your computations.Answer:\$65 millionOnly the operating loss during the year. There is no impairment loss.6
PROBLEM # 5PART A:You have been asked to review the December 31, 2011, balance sheet for Champion Cleaning. After completing your review, you list the following three items for discussion with your superior:1.An investment of \$30,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2012.