Bluegrass Builders Ltd.Is using the completed-contract method for a $2,000,000 contract that will take two years to complete.Data at December 31, 2017, the end of the first year, are The gross profit or loss that should be recognized for 2017 is
A)$50,000 gross profit.
B)$25,000 gross profit.
C)$25,000 loss.
D)$0.

Question

Bluegrass Builders Ltd.Is using the completed-contract method for a $2,000,000 contract that will take two years to complete.Data at December 31, 2017, the end of the first year, are  The gross profit or loss that should be recognized for 2017 is
A)$50,000 gross profit. 
B)$25,000 gross profit. 
C)$25,000 loss. 
D)$0.

Quizplus · Accepted Answer

The Answer of Bluegrass Builders Ltd.Is using the completed-contract method for a $2,000,000 contract that will take two years to complete.Data at December 31, 2017, the end of the first year, are  The gross profit or loss that should be recognized for 2017 is
A)$50,000 gross profit. 
B)$25,000 gross profit. 
C)$25,000 loss. 
D)$0.