Prepare an income statement for the Miller Company for each year assuming that the company...
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Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the completed contract method.
Completed Contract Method versus Percentage-of-Completion Method The Miller Company won a contract to build a shopping center at a price of $240 million The following schedule details the estimated and actual costs of construction and the actual cash collections under the contract: Estimated (Actual) CostsCash Collections of Construction From Customer Year 1 Year 2 Year 3 Year 4 $40,000,000 60,000,000 70,000,000 30,000,000 200,000,000 $48,000,000 60,000,000 60,000,000 72,000,000 $240,000,000 Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the completed contract method Year 1 Year 2 Year 3 Year 4 Total Revenue Construction Cost Net Income Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the percentage-of-completion method Year 1 Year 2 Year 3 Year 4 Total Revenue Construction Cost Net Income
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