In Year 1, Buildall Inc. entered into a $60 million contract to construct a building for a local bank. The contract is expected to take three years to complete. Buildall uses the input method to estimate the stage of project completion. Buildall reports under IFRS. The following data pertain to the construction period: (in millions) (in millions) Year 1 Year 2 Year 3 Actual costs incurred in the year $15.4 $13.0 $16.0 Estimated remaining costs to complete 28.6 19.6 0 Billings during the year 18.0 Collections during the year 14.0 19.6 26.4 What amount of revenue should Buildall recognize in Year 2 on this contract? 20.0 22.0

In Year 1, Buildall Inc. entered into a $60 million contract to construct a building for a local bank. The contract is expected to take three years to complete. Buildall uses the input method to estimate the stage of project completion. Buildall reports under IFRS. The following data pertain to the construction period: (in millions) (in millions) Year 1 Year 2 Year 3 Actual costs incurred in the year $15.4 $13.0 $16.0 Estimated remaining costs to complete 28.6 19.6 0 Billings during the year 18.0 Collections during the year 14.0 19.6 26.4 What amount of revenue should Buildall recognize in Year 2 on this contract? 20.0 22.0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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