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2MaxCompany's inventory balance on December 31, 2016, was $180,000 (hasod on a 123116 physical count) before considering the following transactions: a. Goods shippod to Max fob destination on December 20, 2016, were roccived on b. Goods shipped to Max foh shipping point on December 28, 2016, were received on c. Goods shipped from Max to a customer Lo.b shipping on December 27, 2016, were d. Goods shipped from Max to a customer to h. destination on December 26, 2016, were e. Goods costing $22,000 were held on consignment for Miller Inc. Max's goods worth January 4, 2017. The invoice cost was $37,000 January 5, 2017. The invoice cost was 524,000 reccived by the customer on Janiuary 3,2017. The sales price was 547,000 and the merchandise cost $29,000 recerived by the customer on lan 6. The sales price was $27.,000 and the merchandise cost $20,000, S18,000 were held on consignment with Walker Inc Required Determine the correct inventory amount to be reported in Max's 2016 balance sheet by analyzing each of the above transactions and determining if it should be added to or reduced from the inventory balance or if no update is roquireld (10 points) Invehtory balance $180,000 E. orrected Inventory balance In 2016, Pioneer Construction Company entered into a contract to construct a road for Dentorn County for $10,000,000. The road was completed in 2018. Information relatod to the contract is as follows: 2016 2017 2018 Cost incurred during the year Estimated Billings during the year Cash collections during the year $2,610,000 S3,162,000 $2,230,800 costs to complete as of year-end 6,390,000 2,028,000 0 2,100,000 3,672,000 4,228,000 1,850,000 3,000,000 5,150,000 Pioneer recognizes revenue over time according to percentage of completion. Calculate the % of completion, amount of revenue and gross profit to be recognized in 2016 Calculate the balance in CIP a/c at the end of 2016. Are CIP/Billings presented as an asset or liability in the balance sheet at the end of 2016 a) b) e) a) Percentage of Completion

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