Superior Builders has a fixed -price contract providing $120,000 of revenue. Construction on the contract was begun in 2010 and was completed in 2011. Information relating to the contract is as follows:

What amount of income should Superior recognize in 2011 assuming that the company appropriately uses the percentage-of-completion method of income recognition?
A) $9,286
B) $15,000
C) $17,000
D) $7,000

Question

Superior Builders has a fixed -price contract providing $120,000 of revenue. Construction on the contract was begun in 2010 and was completed in 2011. Information relating to the contract is as follows:

What amount of income should Superior recognize in 2011 assuming that the company appropriately uses the percentage-of-completion method of income recognition?
A) $9,286 
B) $15,000 
C) $17,000 
D) $7,000

Quizplus · Accepted Answer

The Answer of Superior Builders has a fixed -price contract providing $120,000 of revenue. Construction on the contract was begun in 2010 and was completed in 2011. Information relating to the contract is as follows:

What amount of income should Superior recognize in 2011 assuming that the company appropriately uses the percentage-of-completion method of income recognition?
A) $9,286 
B) $15,000 
C) $17,000 
D) $7,000

Superior Builders Has a Fixed -Price Contract Providing $120,000 of Revenue