How much profit should Porter Inc recognize

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Question - On January 1, 20x7, Porter Inc. entered into a 3-year construction contract for $3075916. The actual and expected costs to complete the project as at each year-end are outlined in the table below.

Dec 31, 20x7 Dec 31, 20x8 Dec 31, 20x9

Costs incurred during the year $721920 $650,000 $600,000

Expected costs to complete $1287099 $550,000

Required - How much profit should Porter Inc. recognize in relation to this contract for the fiscal year 20x7?

a. $2353996

b. $1105298

c. $1066897

d. $383378

Reference no: EM132874228

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