Miley, Inc. began work in 2008 on a contract for $8,400,000. Other data are as follows:

-If Miley uses the completed-contract method, the gross profit to be recognized in 2009 is
A) $1,360,000.
B) $2,800,000.
C) $1,400,000.
D) $5,600,000.

Question

Miley, Inc. began work in 2008 on a contract for $8,400,000. Other data are as follows:
 
-If Miley uses the completed-contract method, the gross profit to be recognized in 2009 is
A) $1,360,000. 
B) $2,800,000. 
C) $1,400,000. 
D) $5,600,000.

Quizplus · Accepted Answer

$8,400,000 - $5,600,000 = $2,800,000.