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Hayes Construction Corporation Contracted to Construct a Building for $4,500,000

Question 97

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Hayes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2014 and was completed in 2015. Data relating to the contract are summarized below: Hayes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2014 and was completed in 2015. Data relating to the contract are summarized below: Hayes uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2014, and 2015, respectively, Hayes should report gross profit of A) $810,000 and $540,000. B) $2,700,000 and $1,800,000. C) $900,000 and $450,000. D) $0 and $1,350,000. Hayes uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2014, and 2015, respectively, Hayes should report gross profit of


A) $810,000 and $540,000.
B) $2,700,000 and $1,800,000.
C) $900,000 and $450,000.
D) $0 and $1,350,000.

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