Final answer:
To determine Robertson Construction's percentage completion in 2016, divide the cost incurred by the total estimated costs. The completion percentage is 33.33%, calculated by dividing the $3,000,000 cost incurred by the $9,000,000 total estimated cost.
Step-by-step explanation:
In the scenario provided, Robertson Construction recognizes revenue over time according to the percentage of completion method. To calculate the percentage of completion in 2016, you would divide the cost incurred by the total estimated costs. The cost incurred in 2016 is $3,000,000. The total estimated cost at that point in time is the sum of the cost incurred and the additional cost to complete, which equals $3,000,000 (cost incurred) + $6,000,000 (estimated additional cost to complete) = $9,000,000.
Therefore, the percentage completion in 2016 can be calculated as follows:
Percentage of Completion = (Cost Incurred / Total Estimated Cost) * 100
Percentage of Completion = ($3,000,000 / $9,000,000) * 100
Percentage of Completion = 33.33%
Thus, Robertson's Construction percentage completion for the tunnel in 2016 is 33.33%.