Tradel Construction Company entered into a contract to build a condominium building for $1,800,000.Construction commenced on July 1,2017,with a planned completion date of December 31,2019.A summary of the related accounting information is provided below:

How much gross profit would be recognized in 2019 if Tradel uses the completed contract method?
A)$0
B)$120,000
C)$220,000
D)$250,000

Question

Tradel Construction Company entered into a contract to build a condominium building for $1,800,000.Construction commenced on July 1,2017,with a planned completion date of December 31,2019.A summary of the related accounting information is provided below:

How much gross profit would be recognized in 2019 if Tradel uses the completed contract method?

How much gross profit would be recognized in 2019 if Tradel uses the completed contract method?
A)$0 
B)$120,000 
C)$220,000 
D)$250,000

Quizplus · Accepted Answer

D)$1,800,000 - ($400,000 + $500,000 + $650,000)= $250,000

Tradel Construction Company Entered into a Contract to Build a Condominium