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?
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