On 1 January 2017, Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium. The stadium was to be built over three years, with progress payments as follows: Estimated costs were $50 000 000. The project was 35 per cent complete at the end of 2017, 75 per cent complete at the end of 2018 and 100 per cent complete at the end of 2019. Revenues and costs were as estimated. How much profit was earned during 2019 if the percentage of completion method was used?
A) $3 500 000
B) $5 600 000
C) $14 000 000
D) None of the above

Question

On 1 January 2017, Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium. The stadium was to be built over three years, with progress payments as follows:  Estimated costs were $50 000 000. The project was 35 per cent complete at the end of 2017, 75 per cent complete at the end of 2018 and 100 per cent complete at the end of 2019. Revenues and costs were as estimated. How much profit was earned during 2019 if the percentage of completion method was used?
A) $3 500 000 
B) $5 600 000 
C) $14 000 000 
D) None of the above

Quizplus · Accepted Answer

The Answer of On 1 January 2017, Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium. The stadium was to be built over three years, with progress payments as follows:  Estimated costs were $50 000 000. The project was 35 per cent complete at the end of 2017, 75 per cent complete at the end of 2018 and 100 per cent complete at the end of 2019. Revenues and costs were as estimated. How much profit was earned during 2019 if the percentage of completion method was used?
A) $3 500 000 
B) $5 600 000 
C) $14 000 000 
D) None of the above

On 1 January 2017, Peter Ltd Signed a Contract Worth