Sonnet Construction Company uses the completed-contract method for long-term construction contracts.The information for a specific contract as of January 1,2014,is shown below. $600,000 of cost was incurred during 2014 and on December 31,2014,the estimated remaining cost to complete was still $800,000.The correct balance for the Construction in Progress at December 31,2014 is
A) $600,000.
B) $700,000.
C) $1,200,000.
D) $1,300,000.

Question

Sonnet Construction Company uses the completed-contract method for long-term construction contracts.The information for a specific contract as of January 1,2014,is shown below.  $600,000 of cost was incurred during 2014 and on December 31,2014,the estimated remaining cost to complete was still $800,000.The correct balance for the Construction in Progress at December 31,2014 is
A) $600,000. 
B) $700,000. 
C) $1,200,000. 
D) $1,300,000.

Quizplus · Accepted Answer

The Answer of Sonnet Construction Company uses the completed-contract method for long-term construction contracts.The information for a specific contract as of January 1,2014,is shown below.  $600,000 of cost was incurred during 2014 and on December 31,2014,the estimated remaining cost to complete was still $800,000.The correct balance for the Construction in Progress at December 31,2014 is
A) $600,000. 
B) $700,000. 
C) $1,200,000. 
D) $1,300,000.

Sonnet Construction Company Uses the Completed-Contract Method for Long-Term Construction