Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2009 would be (rounded to the nearest thousand):

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Quizplus · Accepted Answer

Based on the information given, BCC uses the percentage-of-completion method of recognition. Using this method, gross profit is recognized over the life of the project based on the percentage of completion. In 2009, BCC had completed 79% of the project ($2,214,000 / $2,805,000), which means they should recognize 79% of the total gross profit of $75,000, or $59,250. Therefore, the gross profit recognized in 2009 would be $42,000 (rounded to the nearest thousand).

Assuming BCC Uses the Percentage-Of-Completion Method of Recognition the Gross