On 1 January 2015,Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B.The light rail was to be built over three years,with progress payments of $7 000 000 to be made at the end of each year.Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year: The project was completed in December 2017.
-Using the completed contract method,how much profit would Romulus Ltd report in 2017?
A) $0
B) $800 000
C) $5 000 000
D) $6 000 000

Question

On 1 January 2015,Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B.The light rail was to be built over three years,with progress payments of $7 000 000 to be made at the end of each year.Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year:  The project was completed in December 2017.
-Using the completed contract method,how much profit would Romulus Ltd report in 2017?
A) $0 
B) $800 000 
C) $5 000 000 
D) $6 000 000

Quizplus · Accepted Answer

The Answer of On 1 January 2015,Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B.The light rail was to be built over three years,with progress payments of $7 000 000 to be made at the end of each year.Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year:  The project was completed in December 2017.
-Using the completed contract method,how much profit would Romulus Ltd report in 2017?
A) $0 
B) $800 000 
C) $5 000 000 
D) $6 000 000

On 1 January 2015,Romulus Ltd Signed a Contract Worth $21