During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows: Under the completed-contract method, what amount should Gates recognize as gross profit for 2015?
A) $900,000
B) $1,250,000
C) $1,900,000
D) $2,500,000

Question

During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows:  Under the completed-contract method, what amount should Gates recognize as gross profit for 2015?
A) $900,000 
B) $1,250,000 
C) $1,900,000 
D) $2,500,000

Quizplus · Accepted Answer

The Answer of During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows:  Under the completed-contract method, what amount should Gates recognize as gross profit for 2015?
A) $900,000 
B) $1,250,000 
C) $1,900,000 
D) $2,500,000