Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period:
Under the percentage-of-completion method, how much profit should Carbon recognize in year 1?
A)$0
B)$75,000
C)$100,000
D)$400,000

Question

Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period: 
Under the percentage-of-completion method, how much profit should Carbon recognize in year 1?
A)$0 
B)$75,000 
C)$100,000 
D)$400,000

Quizplus · Accepted Answer

The Answer of Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period: 
Under the percentage-of-completion method, how much profit should Carbon recognize in year 1?
A)$0 
B)$75,000 
C)$100,000 
D)$400,000

Carbon Corporation Had a $2,000,000 Contract to Build a Small