Tullis Construction enters into a long - term fixed price contract to build an office tower for $10,800,000. In the first year of the contract Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete the project are $5,000,000. Tullis billed $3,700,000 in year 1 and collected $3,500,000 by the end of the year. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage - of -completion method? (Round any intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest dollar) OA. SO O B. S7,050,000 OC. $1,050,000 D. $4,050,000

Tullis Construction enters into a long - term fixed price contract to build an office tower for $10,800,000. In the first year of the contract Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete the project are $5,000,000. Tullis billed $3,700,000 in year 1 and collected $3,500,000 by the end of the year. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage - of -completion method? (Round any intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest dollar) OA. SO O B. S7,050,000 OC. $1,050,000 D. $4,050,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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