Questions 5 – 7 Baker Construction has agreed to build a ne…

Questions 5 – 7 Baker Construction has agreed to build a new apartment building for a price of $65,000,000.  It takes five years to complete the project, and Baker uses the Percentage of Completion Method to account for long-term contracts.  Information on the cost for the first four years are as follows:    Year 1     Year 2      Year 3    Year 4 Cash Cost incurred to date 15,000,000 25,000,000 50,000,000 57,500,000 Estimated future costs 45,000,000 30,000,000 20,000,000 5,000,000 Current year Billings 17,000,000 13,000,000 15,000,000 14,000,000 Current year Cash collect. 14,500,000 16,000,000 15,500,000 16,000,000   5)Please provide the income statement effect of this contract for the end of Year 2.          6)Please provide the income statement effect of this contract for the end of Year 3.          7)Please provide the income statement effect of this contract for the end of Year 4. 

Question set 20: How does each of the following items impact…

Question set 20: How does each of the following items impact the Pension Benefit Obligation (PBO)?  (increase, decrease, no effect)   Actual return on plan assets (a positive 5%, for example)   Actuarial Gain   Amortization of Prior Service Cost   Contributions   Payments to retirees (withdrawals)