Upton Company Has Consistently Used the Percentage-Of-Completion Method of Recognizing

Upton Company has consistently used the percentage-of-completion method of recognizing income. In 2010, Upton started on an $18,000,000 construction contract that was completed in 2012. The following information was taken from Upton's 2010 accounting records: $\begin{array}{llcc} \text { Progress billing} &\$6,600,000 \\ \text { Costsincured.} &\$5,400,000\\ \text { Collections } &\$4,200,000\\ \text { Estimated cost sto complete } &\$10,800,000\\\end{array}$
What amount of revenue should Upton recognize on the contract in 2010?

A) $6,000,000
B) $5,400,000
C) $9,000,000
D) $0

Correct Answer:

Verified

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