Noyes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2016 and was completed in 2017. Data relating to the contract are summarized below:
Noyes assumes the performance obligation is satisfied over time. What amount of gross profit should Hayes report for 2016?
A) $0
B) $675,000
C) $810,000
D) $900,000

Question

Noyes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2016 and was completed in 2017. Data relating to the contract are summarized below:  
Noyes assumes the performance obligation is satisfied over time. What amount of gross profit should Hayes report for 2016?
A) $0 
B) $675,000 
C) $810,000 
D) $900,000

Quizplus · Accepted Answer

The Answer of Noyes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2016 and was completed in 2017. Data relating to the contract are summarized below:  
Noyes assumes the performance obligation is satisfied over time. What amount of gross profit should Hayes report for 2016?
A) $0 
B) $675,000 
C) $810,000 
D) $900,000

Noyes Construction Corporation Contracted to Construct a Building for $4,500,000