Yang Construction Company entered into a contract to build a new airport terminal for $2,500,000. Construction commenced on August 1, 2011, with a planned completion date of December 31, 2013. A summary of the costs, billings, and collections is provided below: Yang uses the percentage of completion method. How much gross profit would Yang recognize in 2012?
A)$100,000 loss
B)$75,000 loss
C)$50,000 profit
D)$100,000 profit

Question

Yang Construction Company entered into a contract to build a new airport terminal for $2,500,000. Construction commenced on August 1, 2011, with a planned completion date of December 31, 2013. A summary of the costs, billings, and collections is provided below:  Yang uses the percentage of completion method. How much gross profit would Yang recognize in 2012?
A)$100,000 loss 
B)$75,000 loss 
C)$50,000 profit 
D)$100,000 profit

Quizplus · Accepted Answer

The Answer of Yang Construction Company entered into a contract to build a new airport terminal for $2,500,000. Construction commenced on August 1, 2011, with a planned completion date of December 31, 2013. A summary of the costs, billings, and collections is provided below:  Yang uses the percentage of completion method. How much gross profit would Yang recognize in 2012?
A)$100,000 loss 
B)$75,000 loss 
C)$50,000 profit 
D)$100,000 profit

Yang Construction Company Entered into a Contract to Build a New