Use the following information for questions
In 2010, Rupp Corporation began construction work under a three-year contract.The contract price is $3,500,000.Rupp uses the percentage-of-completion method for financial accounting purposes.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial statement presentations relating to this contract at December 31, 2010, follow:

-How much cash was collected in 2010 on this contract?
A)$170,000.
B)$200,000.
C)$25,000.
D)$300,000.

Question

Use the following information for questions 
In 2010, Rupp Corporation began construction work under a three-year contract.The contract price is $3,500,000.Rupp uses the percentage-of-completion method for financial accounting purposes.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial statement presentations relating to this contract at December 31, 2010, follow:
 
-How much cash was collected in 2010 on this contract?
A)$170,000. 
B)$200,000. 
C)$25,000. 
D)$300,000.

Quizplus · Accepted Answer

Cash collected in 2010 = $170,000

Use the Following Information for Questions