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RECOMMENDED!!ACCT 3331-Harplev Construction Companv contracted

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Question 4: Harplev Construction Companv contracted to build a parking garage for $42,000,000. Thecontract was entered into at the beginning of 2018 and is expected to be completed in September2019. At the end of 2018, the costs to date were $12,210,000 and the estimated total costs to complete were $20,290,000. The billings on contract during 2018 were $8,400,000 and the cashcollected during 2018 was $5,600,000. Assuming that Harplev uses the percentage—of—completion method of accounting for long—termcontracts, use the above information to answer the questions below (a blank sheet is provided on the next page fervour work). ROUND percentage of completion to the NEAREST PERCENTAGEPOINT [ex: round 35.58% up to 36%; round 64.40% down to 64%, etc.) a. 0n the 2018 balance sheet, what is the appropriate balance in the Construction inProcess lClP} Inventory:r account? b. What amount ofgross pro?t or loss on the long—term contract will Harplev report in2018?

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