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In 20x1, Chili Peppers Co. started work on three contracts. Information of the contracts is shown below:
Contract 1 Transaction price - 500,000 Costs incurred - 375,000 Estimated costs to complete - 0Contract 2 Transaction price -700,000 Costs incurred - 100,000 Estimated costs to complete - 400,000Contract 3 Transaction price - 250,000 Costs incurred - 100,000 Estimated costs to complete - 100,000
Problem 1: How much is the total revenue recognized from the contracts in 20x2?
a. 700,000b. 575,000c. 500,000d. 0
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