A construction company uses the percentage-of-completion method for long-term construction contracts.A particular job was begun in 2014 and completed in 2015.During 2014,it appeared that the project would cost 25 percent more than originally expected.Data at the end of each year are given below: The contract price was $700,000.Assuming the company properly recorded income in 2013,how much income should be recorded in 2014?
A) $10,000
B) $42,000
C) $160,000
D) $192,000

Question

A construction company uses the percentage-of-completion method for long-term construction contracts.A particular job was begun in 2014 and completed in 2015.During 2014,it appeared that the project would cost 25 percent more than originally expected.Data at the end of each year are given below:  The contract price was $700,000.Assuming the company properly recorded income in 2013,how much income should be recorded in 2014?
A) $10,000 
B) $42,000 
C) $160,000 
D) $192,000

Quizplus · Accepted Answer

The Answer of A construction company uses the percentage-of-completion method for long-term construction contracts.A particular job was begun in 2014 and completed in 2015.During 2014,it appeared that the project would cost 25 percent more than originally expected.Data at the end of each year are given below:  The contract price was $700,000.Assuming the company properly recorded income in 2013,how much income should be recorded in 2014?
A) $10,000 
B) $42,000 
C) $160,000 
D) $192,000

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