On May 1,2014,Lavender Construction Company entered into a fixed-price contract to construct an apartment building for $3,000,000.Lavender appropriately accounts for this contract under the percentage-of-completion method.Information relating to the contract is as follows: What is the amount of contract costs incurred during the year ended December 31,2015?
A) $600,000
B) $960,000
C) $990,000
D) $1,440,000

Question

On May 1,2014,Lavender Construction Company entered into a fixed-price contract to construct an apartment building for $3,000,000.Lavender appropriately accounts for this contract under the percentage-of-completion method.Information relating to the contract is as follows:  What is the amount of contract costs incurred during the year ended December 31,2015?
A) $600,000 
B) $960,000 
C) $990,000 
D) $1,440,000

Quizplus · Accepted Answer

The Answer of On May 1,2014,Lavender Construction Company entered into a fixed-price contract to construct an apartment building for $3,000,000.Lavender appropriately accounts for this contract under the percentage-of-completion method.Information relating to the contract is as follows:  What is the amount of contract costs incurred during the year ended December 31,2015?
A) $600,000 
B) $960,000 
C) $990,000 
D) $1,440,000

On May 1,2014,Lavender Construction Company Entered into a Fixed-Price Contract