Given the following data, what is profit in 2007 under the percentage-of-completion method for a project begun in 2006 with a contract price of $1,000?$\begin{array}{|l|l|l|}
\hline & 2006 & 2007 \
\hline \text { Costs incurred this year } & \$ 100 & \$ 200 \
\hline \text { Total estimated costs remaining at end of year } & 700 & 400 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The percentage of completion for 2007 is calculated as total costs incurred to date ($300) divided by total estimated costs ($700), which is approximately 42.86%. The revenue recognized in 2007 is 42.86% of the contract price ($1,000), which is $428.57. The profit is the revenue recognized ($428.57) minus total costs incurred to date ($300), resulting in a profit of approximately $128.57, rounded to $129.

Given the Following Data, What Is Profit in 2007 Under