In 2017, Dygress Construction Co. began work on a contract for $16,500,000; it was completed in 2018. The following cost data pertain to this contract: Assuming the performance obligation is satisfied over time, what is the amount of gross profit to be recognized on the income statement for the year ended December 31, 2018?
A) $2,400,000
B) $2,695,000
C) $4,050,000
D) $6,450,000

Question

In 2017, Dygress Construction Co. began work on a contract for $16,500,000; it was completed in 2018. The following cost data pertain to this contract:  Assuming the performance obligation is satisfied over time, what is the amount of gross profit to be recognized on the income statement for the year ended December 31, 2018?
A) $2,400,000 
B) $2,695,000 
C) $4,050,000 
D) $6,450,000

Quizplus · Accepted Answer

The Answer of In 2017, Dygress Construction Co. began work on a contract for $16,500,000; it was completed in 2018. The following cost data pertain to this contract:  Assuming the performance obligation is satisfied over time, what is the amount of gross profit to be recognized on the income statement for the year ended December 31, 2018?
A) $2,400,000 
B) $2,695,000 
C) $4,050,000 
D) $6,450,000