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 competed contract method of accounting, how much profit (loss) should Carbon recognize in years 1, 2, and 3 respectively?
A)$0, $0, $250,000
B)$0, $0, $400,000
C)$100,000, $300,000, ($150,000)
D)$75,000, $225,000, ($50,000)

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 competed contract method of accounting, how much profit (loss) should Carbon recognize in years 1, 2, and 3 respectively?
A)$0, $0, $250,000 
B)$0, $0, $400,000 
C)$100,000, $300,000, ($150,000) 
D)$75,000, $225,000, ($50,000)

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 competed contract method of accounting, how much profit (loss) should Carbon recognize in years 1, 2, and 3 respectively?
A)$0, $0, $250,000 
B)$0, $0, $400,000 
C)$100,000, $300,000, ($150,000) 
D)$75,000, $225,000, ($50,000)

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