Upton Company Has Consistently Used the Percentage-Of-Completion Method of Recognizing

question 1

Multiple Choice

Upton Company has consistently used the percentage-of-completion method of recognizing income. In 2010, Upton started on an $18,000,000 construction contract that was completed in 2012. The following information was taken from Upton's 2010 accounting records: $\begin{array}{llcc} \text { Progress billing} &\$6,600,000 \\ \text { Costsincured.} &\$5,400,000\\ \text { Collections } &\$4,200,000\\ \text { Estimated cost sto complete } &\$10,800,000\\\end{array}$
What amount of revenue should Upton recognize on the contract in 2010?

• A) $6,000,000
• B) $5,400,000
• C) $9,000,000
• D) $0

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Definitions:

von Willebrand Factor

A blood glycoprotein involved in hemostasis, important for the formation of blood clots.

Thromboxanes

Eicosanoid compounds that have a role in the formation of blood clots and the reduction of blood flow to the site of the clot, playing a vital role in homeostasis.

Endothelin

A potent vasoconstrictor peptide produced by endothelial cells that plays a significant role in regulating blood flow and blood pressure.

Fibrinogen

A soluble protein in blood plasma that is converted into fibrin during the clotting process, essential for wound healing.