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Undersea Construction Ltd Commenced the Construction of a Tunnel Under

Question 49

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Undersea Construction Ltd commenced the construction of a tunnel under a major river for public transport on 1 July 2004. It has a fixed-price contract for total revenues of $36 million. The expected completion date is 30 June 2007. The expected total cost to Undersea Construction at the beginning of the project is $28 million. The following information relates only to the construction of the tunnel:
Undersea Construction Ltd commenced the construction of a tunnel under a major river for public transport on 1 July 2004. It has a fixed-price contract for total revenues of $36 million. The expected completion date is 30 June 2007. The expected total cost to Undersea Construction at the beginning of the project is $28 million. The following information relates only to the construction of the tunnel: Undersea Construction uses the percentage of completion method based on cost to account for its construction contracts. What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000) ? A) B) C) D) E) None of the given answers.
Undersea Construction uses the percentage of completion method based on cost to account for its construction contracts. What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000) ?


A) Undersea Construction Ltd commenced the construction of a tunnel under a major river for public transport on 1 July 2004. It has a fixed-price contract for total revenues of $36 million. The expected completion date is 30 June 2007. The expected total cost to Undersea Construction at the beginning of the project is $28 million. The following information relates only to the construction of the tunnel: Undersea Construction uses the percentage of completion method based on cost to account for its construction contracts. What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000) ? A) B) C) D) E) None of the given answers.
B) Undersea Construction Ltd commenced the construction of a tunnel under a major river for public transport on 1 July 2004. It has a fixed-price contract for total revenues of $36 million. The expected completion date is 30 June 2007. The expected total cost to Undersea Construction at the beginning of the project is $28 million. The following information relates only to the construction of the tunnel: Undersea Construction uses the percentage of completion method based on cost to account for its construction contracts. What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000) ? A) B) C) D) E) None of the given answers.
C) Undersea Construction Ltd commenced the construction of a tunnel under a major river for public transport on 1 July 2004. It has a fixed-price contract for total revenues of $36 million. The expected completion date is 30 June 2007. The expected total cost to Undersea Construction at the beginning of the project is $28 million. The following information relates only to the construction of the tunnel: Undersea Construction uses the percentage of completion method based on cost to account for its construction contracts. What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000) ? A) B) C) D) E) None of the given answers.
D) Undersea Construction Ltd commenced the construction of a tunnel under a major river for public transport on 1 July 2004. It has a fixed-price contract for total revenues of $36 million. The expected completion date is 30 June 2007. The expected total cost to Undersea Construction at the beginning of the project is $28 million. The following information relates only to the construction of the tunnel: Undersea Construction uses the percentage of completion method based on cost to account for its construction contracts. What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000) ? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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