Guitar Construction Corp.contracted to construct a building for $1,500,000.Construction began in 2014 and was completed in 2015.Data relating to the contract follow: Revenue Recognition 6 - 17 Guitar uses the percentage-of-completion method.For the calendar years 2014 and 2015, respectively, Guitar should report gross profit of
A)$270,000 and $170,000.
B)$900,000 and $600,000.
C)$300,000 and $140,000.
D)$0 and $440,000.

Question

Guitar Construction Corp.contracted to construct a building for $1,500,000.Construction began in 2014 and was completed in 2015.Data relating to the contract follow:  Revenue Recognition 6 - 17 Guitar uses the percentage-of-completion method.For the calendar years 2014 and 2015, respectively, Guitar should report gross profit of
A)$270,000 and $170,000. 
B)$900,000 and $600,000. 
C)$300,000 and $140,000. 
D)$0 and $440,000.

Quizplus · Accepted Answer

The Answer of Guitar Construction Corp.contracted to construct a building for $1,500,000.Construction began in 2014 and was completed in 2015.Data relating to the contract follow:  Revenue Recognition 6 - 17 Guitar uses the percentage-of-completion method.For the calendar years 2014 and 2015, respectively, Guitar should report gross profit of
A)$270,000 and $170,000. 
B)$900,000 and $600,000. 
C)$300,000 and $140,000. 
D)$0 and $440,000.