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Question - Excess Construction Corp. has a $16 million contract to construct a building. The company estimates $10.4 million in costs to construct the building and an expected gross profit of $5.6 million. During the current year, the company incurred $3,120,000 of costs on the contract.
Under the percentage-of-completion method, how much will Excess Construction Corp. report as revenue in the current year?
A) $3,120,000
B) $5,600,000
C) $4,800,000
D) $10,400,000
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