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Please, help to clarify :
Long term asset purchased for contract purposes only:
Purchase date: 01.07.20X0 with Price=3600 residual value 600
Project completion date:31.12.20X2
Monthly depreciation=(3600-600)/30=100Reporting at 31.03.20X1
For Cost to date we add Depreciation of current period=9*100=900Reporting at 31.03.20X2
For cost to date we add Deprecion of what period?in the kit they give all remaining months=21*100=2100But i think, this is reporting at 31.03.20X2 not 31.12.20X2?
Why did they include all remaining depreciation?Hi,
Are you sure the 2,100 is part of the costs to date and not part of the costs to complete, and therefore part of the total contract costs when calculating the total profit?
Thanks
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