29) Horner Construction uses the method. In percentage-of-completion 2024, Honer began work on a contract for $22,000,000; it was completed in 2025. The following cost data pertain to this contract: December 31 Year Ended 2024 2025 Cost Incurred during the year $5,600,000 Estimated costs to complete at the end of year $5,200,000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is A)S8.600.000 INCORRECT $7,800,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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29) Horner Construction uses the
method. In
percentage-of-completion
2024, Honer began work on a contract for $22,000,000; it was completed in
2025. The following cost data pertain to this contract:
December 31
2025
2024
Cost Incurred during the year
$5,600,000
Estimated costs to complete at the end of year
$5,200,000
The amount of gross profit to be recognized on the income statement for the
year ended December 31, 2025 is
Year Ended
A)$8,600,000 INCORRECT
B)$3,440,000
C)$3,200,000
D)$3,600,000
$7,800,000
Transcribed Image Text:29) Horner Construction uses the method. In percentage-of-completion 2024, Honer began work on a contract for $22,000,000; it was completed in 2025. The following cost data pertain to this contract: December 31 2025 2024 Cost Incurred during the year $5,600,000 Estimated costs to complete at the end of year $5,200,000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is Year Ended A)$8,600,000 INCORRECT B)$3,440,000 C)$3,200,000 D)$3,600,000 $7,800,000
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