Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $1,200,000. The costs incurred by Karr and the payments from the state over the three year period are as follows:
If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2011?
a. $600,000
b. $400,000
c. $300,000
d. $150,000

Question

Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $1,200,000. The costs incurred by Karr and the payments from the state over the three year period are as follows:
  If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2011? 
a. $600,000
b. $400,000
c. $300,000
d. $150,000

Quizplus · Accepted Answer

The Answer of Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $1,200,000. The costs incurred by Karr and the payments from the state over the three year period are as follows:
  If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2011? 
a. $600,000
b. $400,000
c. $300,000
d. $150,000

Karr Construction Built a Levee for the State of Mississippi