Financial Reporting and Analysis Q82
82A company entered into a three-year construction project with a total contract price (all figures in „000s $) of $5,000 and expected costs of $4,500. The company recognizes revenue using the percentage of completion method. The data below relate to the contract.
| (All figures in „000s $) | Year 1 | Year 2 | Year 3 |
| Costs incurred and paid | 1,500 | 2,000 | 1,000 |
| Amounts billed and payments received | 1,000 | 2,000 | 2,000 |
The amount of revenue (in $„000s) the company will recognize in Year 2 is
closest to:
closest to:
