Long-term construction accounting (20 points) Garnet Construction Co. Contracted to build a bridge for $5,000,000. Construction began in 2007 and...

8. Long-term construction accounting (20 points) Garnet Construction Co. Contracted to build a bridge for $5,000,000. Construction began in 2007 and was completed in 2008. Data relating to the construction are: Costs incurred Estimated costs to complete Garnet uses the percentage-of-completion method. Instructions (a) How much revenue should be reported for 2007? Show your computation. What amount will be reported on the balance at 12/31/07 with respect to this contract?