The following data relate to a construction job started by Harrington Co.during 2014:

-See Harrington Co.information above.Under the completed-contract method,how much should Harrington recognize as gross profit for 2014?
A) $0
B) $30,000
C) $40,000
D) $90,000

Question

The following data relate to a construction job started by Harrington Co.during 2014:
 
-See Harrington Co.information above.Under the completed-contract method,how much should Harrington recognize as gross profit for 2014?
A) $0 
B) $30,000 
C) $40,000 
D) $90,000

Quizplus · Accepted Answer

Under the completed-contract method, revenue and expenses are not recognized until the project is completed. Therefore, no gross profit should be recognized in 2014.

The Following Data Relate to a Construction Job Started by Harrington