Assume that Spark uses the percentage-of-completion method of accounting.Under the earnings approach, the portion of the total gross profit to be recognized as income in 2010 is
A)$150,000.
B)$200,000.
C)$600,000.
D)$800,000.

Question

Quizplus · Accepted Answer

The percentage-of-completion method recognizes revenue and gross profit based on the progress of the construction project. The portion of the total gross profit recognized as income in 2010 would be calculated based on the percentage of the project completed in that year.

Assume That Spark Uses the Percentage-Of-Completion Method of Accounting