Carbon Corporation Had a $2,000,000 Contract to Build a Small

question 7

Multiple Choice

Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period:
$\begin{array}{lll}\underline{\text { Year } }&\underline{ \text { Payments }}& \underline{\text { Expenses }}\\1 & \$ 400,000 & \$ 300,000 \\2 & \$ 1,200,000 & \$ 900,000 \\3 & \$ 400,000 & \$ 550,000\end{array}$

Under the percentage-of-completion method, how much profit should Carbon recognize in year 2?

• A)$400,000
• B)$300,000
• C)$225,000
• D)$150,000

---

Definitions:

Leadership Skills

Refers to the abilities and competencies that effective leaders demonstrate, including communication, decision-making, and strategic thinking.

Bennis and Nanus

Scholars known for their work on leadership, especially their identification of the four competencies of effective leaders: attention through vision, meaning through communication, trust through positioning, and the deployment of self.

Leaders

Individuals who guide or direct in a course by showing the way, influencing, or commanding a group, organization, or country.

Management

The process of dealing with or controlling things or people, often involving planning, organizing, directing, and monitoring organizational resources.