Bruner Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2014, Bruner started work on a $42,000,000 construction contract that was completed in 2015. The following information was taken from Bruner's 2014 accounting records: $$\begin{array} { l r }
\text { Progress billings } & \$ 13,200,000 \
\text { Costs incurred } & 12,600,000 \
\text { Collections } & 8,400,000 \
\text { Estimated costs to complete } & 25,200,000
\end{array}$$ What amount of gross profit should Bruner have recognized in 2014 on this contract?
A) $4,200,000
B) $2,800,000
C) $2,100,000
D) $1,400,000

Question

Bruner Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2014, Bruner started work on a $42,000,000 construction contract that was completed in 2015. The following information was taken from Bruner's 2014 accounting records: $$\begin{array} { l r } 
\text { Progress billings } & \$ 13,200,000 \
\text { Costs incurred } & 12,600,000 \
\text { Collections } & 8,400,000 \
\text { Estimated costs to complete } & 25,200,000
\end{array}$$ What amount of gross profit should Bruner have recognized in 2014 on this contract?
A) $4,200,000
B) $2,800,000
C) $2,100,000
D) $1,400,000

Quizplus · Accepted Answer

The Answer of Bruner Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2014, Bruner started work on a $42,000,000 construction contract that was completed in 2015. The following information was taken from Bruner's 2014 accounting records: $$\begin{array} { l r } 
\text { Progress billings } & \$ 13,200,000 \
\text { Costs incurred } & 12,600,000 \
\text { Collections } & 8,400,000 \
\text { Estimated costs to complete } & 25,200,000
\end{array}$$ What amount of gross profit should Bruner have recognized in 2014 on this contract?
A) $4,200,000
B) $2,800,000
C) $2,100,000
D) $1,400,000

Bruner Constructors, Inc What Amount of Gross Profit Should Bruner Have Recognized in Recognizing