Ramos, Inc. began work in 2008 on contract 3814, which provided for a contract price of $7,200,000. Other details follow:

-Assume that Ramos uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2008 is
A) $450,000.
B) $600,000.
C) $1,800,000.
D) $2,400,000.

Question

Ramos, Inc. began work in 2008 on contract 3814, which provided for a contract price of $7,200,000. Other details follow:
 
-Assume that Ramos uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2008 is
A) $450,000. 
B) $600,000. 
C) $1,800,000. 
D) $2,400,000.

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