Upton Company has consistently used the percentage-of-completion method of recognizing income.In 2010,Upton started on an $18,000,000 construction contract that was completed in 2012.The following information was taken from Upton's 2010 accounting records:
What amount of revenue should Upton recognize on the contract in 2010?
A) $6,000,000
B) $5,400,000
C) $9,000,000
D) $0

Question

Upton Company has consistently used the percentage-of-completion method of recognizing income.In 2010,Upton started on an $18,000,000 construction contract that was completed in 2012.The following information was taken from Upton's 2010 accounting records: 
What amount of revenue should Upton recognize on the contract in 2010?
A) $6,000,000 
B) $5,400,000 
C) $9,000,000 
D) $0

Quizplus · Accepted Answer

$5,400,000 / ($5,400,000 + 10,800,000)= 33.3%
33.3% x $18,000,000 = $6,000,000

Upton Company Has Consistently Used the Percentage-Of-Completion Method of Recognizing