Method of recognition the gross profit

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Reference no: EM13920582

Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand):

$42,000.

$6,000.

$45,000.

$39,000.

Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2013, are presented below:

Bid price			$450,000
Contract cost:		2012	(180,000)
		2013	(195,000)
Gross profit:			75,000

Estimated cost to complete:
12/31/2012	$200,000
12/31/2013	0		Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand): $42,000. $6,000. $45,000. $39,000. Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand): $42,000. $6,000. $45,000. $39,000.

Reference no: EM13920582

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