Simulation _ CPA4

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University of Texas, Rio Grande Valley *

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6321

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Accounting

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May 6, 2024

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pdf

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7

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9/14/23, 11:09 PM Simulation | CPA https://cpa.becker.com/module/F-01-04/V4.3/sim/session 1/7 PERCENTAGE OF COMPLETION METHOD Question 1 Solution: Calculation: Estimate pro±t (Sale price $2,800,000 – Estimated costs $1,600,000) $1,200,000 Determine percentage complete (Costs to date $400,000 / Estimated Costs $1,600,000) 25% Apply percentage complete to estimated pro±t ($1,200,000 × 25%) $ 300,000 Question 2 Solution:
9/14/23, 11:09 PM Simulation | CPA https://cpa.becker.com/module/F-01-04/V4.3/sim/session 2/7 Question 3 Solution:
9/14/23, 11:09 PM Simulation | CPA https://cpa.becker.com/module/F-01-04/V4.3/sim/session 3/7 Calculation: Construction in progress ($400,000 + $300,000) $700,000 Less: Progress billings 250,000 Net construction in progress (Current asset) $450,000 Question 4 Solution: Calculation: Estimate pro±t (Sale price $2,800,000 – Estimated costs $2,000,000) $800,000 Determine percentage complete (Costs to date $900,000 / Estimated Costs $2,000,000) 45% Apply percentage complete to estimated pro±t ($800,000 × 45%) to ±nd the cumulative Year 2 pro±t $360,000 Subtract pro±t recognized in Year 1 300,000 Pro±t to be recognized in Year 2 $ 60,000 Question 5 Solution:
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