Assume that Hemsworth uses the completed-contract method of accounting. The portion of the total gross profit to be recognized in 2021 is
A) $ 120,000.
B) $ 180,000.
C) $ 310,000.
D) $ 960,000.

Question

Quizplus · Accepted Answer

Under the completed-contract method, gross profit is recognized only when the contract is completed. Therefore, the portion of the total gross profit to be recognized in 2021 would be the total gross profit from the contract, which is $310,000.

Assume That Hemsworth Uses the Completed-Contract Method of Accounting