Sailor Construction Company has consistently used the percentage-of- completion method.On January 10,2014,Sailor began work on a $3,000,000 construction contract.At the inception date,the estimated cost of construction was $2,250,000.The following data relate to the progress of the contract:

How much gross profit should Sailor recognize for the year ended December 31,2015?
A)$150,000
B)$262,500
C)$300,000
D)$450,000

Question

Sailor Construction Company has consistently used the percentage-of- completion method.On January 10,2014,Sailor began work on a $3,000,000 construction contract.At the inception date,the estimated cost of construction was $2,250,000.The following data relate to the progress of the contract:

How much gross profit should Sailor recognize for the year ended December 31,2015?

How much gross profit should Sailor recognize for the year ended December 31,2015?
A)$150,000 
B)$262,500 
C)$300,000 
D)$450,000

Quizplus · Accepted Answer

The Answer of Sailor Construction Company has consistently used the percentage-of- completion method.On January 10,2014,Sailor began work on a $3,000,000 construction contract.At the inception date,the estimated cost of construction was $2,250,000.The following data relate to the progress of the contract:

How much gross profit should Sailor recognize for the year ended December 31,2015?
A)$150,000 
B)$262,500 
C)$300,000 
D)$450,000

Sailor Construction Company Has Consistently Used the Percentage-Of- Completion Method