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A Construction Company Uses the Percentage-Of-Completion Method for Long-Term Construction

Question 49

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A construction company uses the percentage-of-completion method for long-term construction contracts.A particular job was begun in 2014 and completed in 2015.During 2014,it appeared that the project would cost 25 percent more than originally expected.Data at the end of each year are given below:
A construction company uses the percentage-of-completion method for long-term construction contracts.A particular job was begun in 2014 and completed in 2015.During 2014,it appeared that the project would cost 25 percent more than originally expected.Data at the end of each year are given below: The contract price was $700,000.Assuming the company properly recorded income in 2013,how much income should be recorded in 2014? A) $10,000 B) $42,000 C) $160,000 D) $192,000
The contract price was $700,000.Assuming the company properly recorded income in 2013,how much income should be recorded in 2014?


A) $10,000
B) $42,000
C) $160,000
D) $192,000

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