Early in 2012, Forest Ltd. signed a contract to construct a warehouse. Forest's management estimated the gross profit on the contract to be $740,000, as indicated by the following: At the end of 2012, the status of the work on the contract was as follows:
How much revenue can be recognized on this contract for 2012, assuming that Forest uses the
Percentage of completion basis for long-term construction contracts (round to nearest dollar)?
A)$333,000
B)$863,333
C)$1,575,000
D)$1,711,957

Question

Early in 2012, Forest Ltd. signed a contract to construct a warehouse. Forest's management estimated the gross profit on the contract to be $740,000, as indicated by the following:  At the end of 2012, the status of the work on the contract was as follows:
 How much revenue can be recognized on this contract for 2012, assuming that Forest uses the
Percentage of completion basis for long-term construction contracts (round to nearest dollar)?
A)$333,000 
B)$863,333 
C)$1,575,000 
D)$1,711,957

Quizplus · Accepted Answer

The Answer of Early in 2012, Forest Ltd. signed a contract to construct a warehouse. Forest's management estimated the gross profit on the contract to be $740,000, as indicated by the following:  At the end of 2012, the status of the work on the contract was as follows:
 How much revenue can be recognized on this contract for 2012, assuming that Forest uses the
Percentage of completion basis for long-term construction contracts (round to nearest dollar)?
A)$333,000 
B)$863,333 
C)$1,575,000 
D)$1,711,957