Chapter 8, Problem 8.8MC

During Yoar 1 Moriwothor Construction Company started a construction job with a contract price of $3 000.000 The job was completed in Year 2. and the company uses the percentage of completion method The following information is available for Year 1 and Year 2

	Year 1	Year 2
Cost incurred to dato	$ 500,000	$7,400,000
Estimated cost to complete	1,500,000	0
Billmgs to date	300,000	1,800,000
Collections to date	100,000	1,600,000

What amount of gross profit should Meriwether recognize for this job for Year 2?

1. a. $250,000
2. b. $1,000,000
3. c. $350 000
4. d. $600 000