Exhibit 18-2 The following information relates to a project of the Sarasota Construction Company:
$\begin{array}{llll}
&2010&2011&2012\
\text { Construction costs incurred } & \$ 136,000 & \$ 546,500 & \$ 200,000 \
\text { Estimated costs to complete } & 714,000 & 227,500 & --
\end{array}$
The contract price was $1, 000, 000.Sarasota used the percentage-of-completion method of revenue recognition.
-
Refer to Exhibit 18-2.What amount of gross profit was recognized in 2010?
A)$150, 000
B)$ 28, 571
C)$ 24, 000
D)$ 20, 400

Question

Exhibit 18-2 The following information relates to a project of the Sarasota Construction Company:
$\begin{array}{llll}
&2010&2011&2012\
\text { Construction costs incurred } & \$ 136,000 & \$ 546,500 & \$ 200,000 \
\text { Estimated costs to complete } & 714,000 & 227,500 & --
\end{array}$
 The contract price was $1, 000, 000.Sarasota used the percentage-of-completion method of revenue recognition.
-
Refer to Exhibit 18-2.What amount of gross profit was recognized in 2010?
A)$150, 000
B)$ 28, 571
C)$ 24, 000
D)$ 20, 400

Quizplus · Accepted Answer

The Answer of Exhibit 18-2 The following information relates to a project of the Sarasota Construction Company:
$\begin{array}{llll}
&2010&2011&2012\
\text { Construction costs incurred } & \$ 136,000 & \$ 546,500 & \$ 200,000 \
\text { Estimated costs to complete } & 714,000 & 227,500 & --
\end{array}$
 The contract price was $1, 000, 000.Sarasota used the percentage-of-completion method of revenue recognition.
-
Refer to Exhibit 18-2.What amount of gross profit was recognized in 2010?
A)$150, 000
B)$ 28, 571
C)$ 24, 000
D)$ 20, 400

Exhibit 18-2 the Following Information Relates to a Project of the Sarasota