Use the following information for questions.
In 2017, Hip-hop Inc.began a three year construction contract for $7,000,000.Hip-hop uses the percentage-of-completion method.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 presentation relating to this contract for calendar 2017 follow:
-How much cash was collected in 2014 on this contract?
A)$50,000
B)$340,000
C)$400,000
D)$600,000

Question

Use the following information for questions.
In 2017, Hip-hop Inc.began a three year construction contract for $7,000,000.Hip-hop uses the percentage-of-completion method.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 presentation relating to this contract for calendar 2017 follow: 
-How much cash was collected in 2014 on this contract?
A)$50,000 
B)$340,000 
C)$400,000 
D)$600,000

Quizplus · Accepted Answer

The financial statement shows that in 2017, Hip-hop Inc. collected $3,600,000 of the contract price. However, the question asks for how much cash was collected in 2014, which is not provided in the given information. Therefore, we cannot determine the answer to this question.

Use the Following Information for Questions