Please show work and give reasons wherever necessary : Cascade Logging Company h
ID: 2346784 • Letter: P
Question
Please show work and give reasons wherever necessary :
Cascade Logging Company hired Dmitri Construction Company to build a new bridge across the Logan River. The bridge would extend a logging road into a new stand of timber. The contract called for a payment of $11 million on completion of the bridge. Work was begun in 20X0 and completed in 20X2. Total costs were: Suppose the accountant for Dmitri Construction Company judged that Cascade Logging might not be able to pay $11 million. How much revenue would you recognize each year? Suppose Cascade Logging is a subsidiary of a major wood products company. Therefore, receipt of payment on the contract is reasonably certain. How much revenue would you recognize each year?Explanation / Answer
1. zilch 2. 30% first year 30% the second and 40% the third. (3.3 million, 3.3million, and 4.4 million)