Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand):
$42,000.
$6,000.
$45,000.
$39,000.
Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2013, are presented below:
|
Bid price
|
|
|
$450,000
|
|
Contract cost:
|
|
2012
|
(180,000)
|
|
|
|
2013
|
(195,000)
|
|
Gross profit:
|
|
|
75,000
|
|
|
|
|
|
|
Estimated cost to complete:
|
|
|
|
12/31/2012
|
$200,000
|
|
|
|
12/31/2013
|
0
|
|
Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand):
$42,000.
$6,000.
$45,000.
$39,000.
Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand):
$42,000.
$6,000.
$45,000.
$39,000.
|