Lagory Co Started a Contract in June 2020 to Build a a Bridge

Lagory Co. started a contract in June 2020 to build a bridge at a fixed price of $14 million. The bridge was to be completed by October 2022. Total cumulative costs incurred by the end of December 2020 and 2021 were $2 million and $6 million, respectively. Lagory Co. is unable to estimate the total costs of the project prior to completion. Final costs at the end of the project totalled $11 million. How much revenue will Lagory Co. report in 2021?

A) $2,000,000
B) $3,000,000
C) $4,000,000
D) $14,000,000

Correct Answer:

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