Astor Construction Company uses the percentage-of-completion method for long-term construction contracts.A specific job was begun in 2014 and completed in 2016.The contract price was $1,400,000 and cost information as of each year-end is given below:

Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?
A)$0
B)$20,000
C)$300,000
D)$320,000

Question

Astor Construction Company uses the percentage-of-completion method for long-term construction contracts.A specific job was begun in 2014 and completed in 2016.The contract price was $1,400,000 and cost information as of each year-end is given below:

Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?

Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?
A)$0 
B)$20,000 
C)$300,000 
D)$320,000

Quizplus · Accepted Answer

The Answer of Astor Construction Company uses the percentage-of-completion method for long-term construction contracts.A specific job was begun in 2014 and completed in 2016.The contract price was $1,400,000 and cost information as of each year-end is given below:

Assuming Astor correctly recorded gross profit in 2014,how much gross profit should the company record in 2015?
A)$0 
B)$20,000 
C)$300,000 
D)$320,000

Astor Construction Company Uses the Percentage-Of-Completion Method for Long-Term Construction