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During 2014, Gates Corp

Question 7

Multiple Choice

During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows: During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows: Under the completed-contract method, what amount should Gates recognize as gross profit for 2015? A) $900,000 B) $1,250,000 C) $1,900,000 D) $2,500,000 Under the completed-contract method, what amount should Gates recognize as gross profit for 2015?


A) $900,000
B) $1,250,000
C) $1,900,000
D) $2,500,000

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