Astor Construction Company uses the percentage-of-completion method for long-term construction contracts.A specific job was begun in 2014 and completed in 2016.The contract price was $1,400,000 and cost information as of each year-end is given below: Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?
A) $0
B) $20,000
C) $300,000
D) $320,000

Question

Astor Construction Company uses the percentage-of-completion method for long-term construction contracts.A specific job was begun in 2014 and completed in 2016.The contract price was $1,400,000 and cost information as of each year-end is given below:  Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?
A) $0 
B) $20,000 
C) $300,000 
D) $320,000

Quizplus · Accepted Answer

The Answer of Astor Construction Company uses the percentage-of-completion method for long-term construction contracts.A specific job was begun in 2014 and completed in 2016.The contract price was $1,400,000 and cost information as of each year-end is given below:  Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?
A) $0 
B) $20,000 
C) $300,000 
D) $320,000

Astor Construction Company Uses the Percentage-Of-Completion Method for Long-Term Construction