Use the following information for questions.
Alternative Ltd.Began work in 2017 on a contract for $1,200,000.Other details follow:
-Assume that Alternative uses the percentage-of-completion method of accounting.The portion of the total gross profit to be recognized in 2017 is
A)$75,000.
B)$100,000.
C)$300,000.
D)$400,000.

Question

Use the following information for questions.
Alternative Ltd.Began work in 2017 on a contract for $1,200,000.Other details follow: 
-Assume that Alternative uses the percentage-of-completion method of accounting.The portion of the total gross profit to be recognized in 2017 is
A)$75,000. 
B)$100,000. 
C)$300,000. 
D)$400,000.

Quizplus · Accepted Answer

The percentage-of-completion method recognizes revenue based on the progress of the project. The portion of gross profit recognized in 2017 would be calculated based on the percentage of the project completed in that year.

Use the Following Information for Questions