Nova Construction Company (NCC)entered into a contract to build a school for $1,800,000. Construction commenced on May 1, 2011, with a planned completion date of December 31, 2013. A summary of the related accounting information is provided below: How much gross profit would be recognized in fiscal 2011 if NCC uses the percentage of completion method?
A)$50,000
B)$100,000
C)$130,000
D)$180,000

Question

Nova Construction Company (NCC)entered into a contract to build a school for $1,800,000. Construction commenced on May 1, 2011, with a planned completion date of December 31, 2013. A summary of the related accounting information is provided below:  How much gross profit would be recognized in fiscal 2011 if NCC uses the percentage of completion method?
A)$50,000 
B)$100,000 
C)$130,000 
D)$180,000

Quizplus · Accepted Answer

The Answer of Nova Construction Company (NCC)entered into a contract to build a school for $1,800,000. Construction commenced on May 1, 2011, with a planned completion date of December 31, 2013. A summary of the related accounting information is provided below:  How much gross profit would be recognized in fiscal 2011 if NCC uses the percentage of completion method?
A)$50,000 
B)$100,000 
C)$130,000 
D)$180,000

Nova Construction Company (NCC)entered into a Contract to Build a School