Give an example of a sales or service transaction and how (timing) revenue would be...
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Give an example of a sales or service transaction and how (timing) revenue would be recognized. For sale, a construction company builds a bridge with a contract price of $15 million and it is expected to cost $12 million and take 3 years to complete. In year 1, the company spends $3 million in construction costs, so they can recognize 25% (3M/12M) of $15 M in revenue or $3.75 million
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