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State Co. recognizes construction revenue and expenses from long-term contracts over the period its construction obligation is satisfied. State measures progress on the contract using the percentage of completion method. During Year 1, a long-term project was begun; it continued through Year 2. Information on the project follows: Year 1 Year 2 Accounts receivable from construction contract $100,000 $300,000 Construction in progress 122,000 364,000 Construction expenses per period 192,000 Profit recognized from the long-term construction contract in Year 2 should be Group of answer choices $17,000 $50,000 $64,000 $67,000 105,000

State Co. recognizes construction revenue and expenses from long-term contracts over the period its construction obligation is satisfied. State measures progress on the contract using the percentage of completion method. During Year 1, a long-term project was begun; it continued through Year 2. Information on the project follows: Year 1 Year 2 Accounts receivable from construction contract $100,000 $300,000 Construction in progress 122,000 364,000 Construction expenses per period 192,000 Profit recognized from the long-term construction contract in Year 2 should be Group of answer choices $17,000 $50,000 $64,000 $67,000 105,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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State Co. recognizes construction revenue and expenses from long-term contracts over the period its construction obligation is satisfied. State measures progress on the contract using the percentage of completion method. During Year 1, a long-term project was begun; it continued through Year 2. Information on the project follows: Year 1 Year 2 Accounts receivable from construction contract $100,000 $300,000 364,000 Construction in progress 122,000 Construction expenses per period 105,000 192,000 Profit recognized from the long-term construction contract in Year 2 should be Group of answer choices $17,000 $50,000 $64,000 $67,000
Transcribed Image Text:State Co. recognizes construction revenue and expenses from long-term contracts over the period its construction obligation is satisfied. State measures progress on the contract using the percentage of completion method. During Year 1, a long-term project was begun; it continued through Year 2. Information on the project follows: Year 1 Year 2 Accounts receivable from construction contract $100,000 $300,000 364,000 Construction in progress 122,000 Construction expenses per period 105,000 192,000 Profit recognized from the long-term construction contract in Year 2 should be Group of answer choices $17,000 $50,000 $64,000 $67,000
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