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Under the Percentage-Of-Completion Method, a Company Has Recognized $40,000 of Profit

Question 141

Multiple Choice

Under the percentage-of-completion method, a company has recognized $40,000 of profit through to the beginning of the current year on a contract, and total estimated contract cost is $500,000 at that time. The contract price is $800,000. What is the percent of completion at the beginning of the current year?


A) 13.33%
B) 15.8%
C) 8%
D) Insufficient data

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