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Shepard Construction Company Has Consistently Used the Percentage-Of- Completion Method

Question 26

Multiple Choice

Shepard Construction Company has consistently used the percentage-of- completion method. On January 10, 2011, Shepard began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract:
Shepard Construction Company has consistently used the percentage-of- completion method. On January 10, 2011, Shepard began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract: How much gross profit should Shepard recognize for the year ended December 31, 2012? A) $150,000 B) $262,500 C) $300,000 D) $450,000
How much gross profit should Shepard recognize for the year ended December 31, 2012?


A) $150,000
B) $262,500
C) $300,000
D) $450,000

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