Madina Construction Company had a contract starting Aprill 2021, to construct a €18,000,000 building that is expected to be completed in September 2023, at an estimated cost of €16,500,000. At the end of 2021, the costs to date were €7,590,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were €3,600.000 and the cash collected during 2021 was €2,400,000. Madina uses the percentage-of-completion method. For the year ended December 31, 2021, Madina would recognize gross profit on the building of A Zero 810,000 € 690,000 D.632,500.5
Madina Construction Company had a contract starting Aprill 2021, to construct a €18,000,000 building that is expected to be completed in September 2023, at an estimated cost of €16,500,000. At the end of 2021, the costs to date were €7,590,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were €3,600.000 and the cash collected during 2021 was €2,400,000. Madina uses the percentage-of-completion method. For the year ended December 31, 2021, Madina would recognize gross profit on the building of A Zero 810,000 € 690,000 D.632,500.5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Madina Construction Company had a contract starting April 2021, to construct a €18,000,000 building that is expected to be completed in
September 2023, at an estimated cost of €16,500,000. At the end of 2021, the costs to date were €7,590,000 and the estimated total costs to
complete had not changed. The progress billings during 2021 were €3,600,000 and the cash collected during 2021 was €2,400,000. Madina uses
the percentage-of-completion method. For the year ended December 31, 2021, Madina would recognize gross profit on the building of:
A Zero
ⒸB.810,000
C690,000
OD.632,500.5
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