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GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows:                                                               2021.           2022 Partial billing on contract                1,000,000.      4,200,000 Accounts receivable                       1,000,000       3,000,000 Construction cost                           1,050,000       1,920,000 Construction in progress                1,220,000        3,640,000 What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively?          2021          2022 A.220,000.   2,280,000 B.170,000.   500,000 C.220,000.   1,000,000 D.170,000.   1,280,000

GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows:                                                               2021.           2022 Partial billing on contract                1,000,000.      4,200,000 Accounts receivable                       1,000,000       3,000,000 Construction cost                           1,050,000       1,920,000 Construction in progress                1,220,000        3,640,000 What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively?          2021          2022 A.220,000.   2,280,000 B.170,000.   500,000 C.220,000.   1,000,000 D.170,000.   1,280,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows:

                                                              2021.           2022

Partial billing on contract                1,000,000.      4,200,000

Accounts receivable                       1,000,000       3,000,000

Construction cost                           1,050,000       1,920,000

Construction in progress                1,220,000        3,640,000

What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively?

 

       2021          2022

A.220,000.   2,280,000

B.170,000.   500,000

C.220,000.   1,000,000

D.170,000.   1,280,000

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