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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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