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 used the completed contract method to recognize revenue, what would gross profit have been in 2012 and 2013 (rounded to the nearest thousand)?
|
2012
|
2013
|
| a. |
$36,000 |
$39,000 |
| b. |
$30,000 |
$45,000 |
| c. |
$70,000 |
$5,000 |
| d. |
$0 |
$75,000 |