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 (loss) should Carbon recognize in year 3?
A)($150,000)
B)($50,000)
C)$150,000
D)$250,000

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 (loss) should Carbon recognize in year 3?
A)($150,000) 
B)($50,000) 
C)$150,000 
D)$250,000

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 (loss) should Carbon recognize in year 3?
A)($150,000) 
B)($50,000) 
C)$150,000 
D)$250,000

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