Cooper Construction Company had a contract starting January 2013, to construct a $12,000,000 building that is expected to be completed by the end of 2015 at an estimated cost of $11,000,000. At the end of 2013, the costs to date were $5,060,000 and the estimated total costs to complete had not changed. The progress billings during 2013 were $2,400,000 and the cash collected during 2013 was 1,600,000. Cooper Construction Company uses the percentage-of-completion method for revenue recognition.
At December 31, 2013 Cooper would report revenue in the amount of:
The question belongs to Accounting and it discusses about calculation of revenue for a construction company with an unfinished project.
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