Noland Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2008, Noland started work on a $35,000,000 construction contract that was completed in 2009. The following information was taken from Noland's 2008 accounting records:
What amount of gross profit should Noland have recognized in 2008 on this contract?
A) $3,500,000
B) $2,333,334
C) $1,750,000
D) $1,166,667

Question

Noland Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2008, Noland started work on a $35,000,000 construction contract that was completed in 2009. The following information was taken from Noland's 2008 accounting records:
 What amount of gross profit should Noland have recognized in 2008 on this contract?
A) $3,500,000 
B) $2,333,334 
C) $1,750,000 
D) $1,166,667

Quizplus · Accepted Answer

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