Johann Builders has a fixed -price contract providing $120,000 of revenue.Construction on the contract was begun in 2013 and was completed in 2014.Information relating to the contract is as follows:

What amount of income should Johann recognize in 2014 assuming that the company appropriately uses the percentage-of-completion method of income recognition?
A)$9,286
B)$15,000
C)$17,000
D)$7,000

Question

Johann Builders has a fixed -price contract providing $120,000 of revenue.Construction on the contract was begun in 2013 and was completed in 2014.Information relating to the contract is as follows:

What amount of income should Johann recognize in 2014 assuming that the company appropriately uses the percentage-of-completion method of income recognition?
A)$9,286 
B)$15,000 
C)$17,000 
D)$7,000

Quizplus · Accepted Answer

The Answer of Johann Builders has a fixed -price contract providing $120,000 of revenue.Construction on the contract was begun in 2013 and was completed in 2014.Information relating to the contract is as follows:

What amount of income should Johann recognize in 2014 assuming that the company appropriately uses the percentage-of-completion method of income recognition?
A)$9,286 
B)$15,000 
C)$17,000 
D)$7,000

Johann Builders Has a Fixed -Price Contract Providing $120,000 of Revenue.Construction