C & J Construction, Inc. has consistently used the percentage-of-completion method of recognizing income. Last year C & J started work on a $4,500,000 construction contract, which was completed this year. The accounting records disclosed the following data for last year:

How much income should C & J have recognized on this contract last year?
A) $105,000
B) $150,000
C) $300,000
D) $350,000

Question

C & J Construction, Inc. has consistently used the percentage-of-completion method of recognizing income. Last year C & J started work on a $4,500,000 construction contract, which was completed this year. The accounting records disclosed the following data for last year:

How much income should C & J have recognized on this contract last year?

How much income should C & J have recognized on this contract last year?
A) $105,000 
B) $150,000 
C) $300,000 
D) $350,000

Quizplus · Accepted Answer

The Answer of C & J Construction, Inc. has consistently used the percentage-of-completion method of recognizing income. Last year C & J started work on a $4,500,000 construction contract, which was completed this year. The accounting records disclosed the following data for last year:

How much income should C & J have recognized on this contract last year?
A) $105,000 
B) $150,000 
C) $300,000 
D) $350,000