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