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

question 64

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:
Under the competed contract method of accounting, how much profit (loss) should Carbon recognize in years 1, 2, and 3 respectively?

• A)$0, $0, $250,000
• B)$0, $0, $400,000
• C)$100,000, $300,000, ($150,000)
• D)$75,000, $225,000, ($50,000)

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Definitions:

Carbon Cycle

The biogeochemical cycle by which carbon is exchanged among the biosphere, pedosphere, geosphere, hydrosphere, and atmosphere of the Earth.

Respiration

The metabolic processes by which an organism obtains energy (in the form of ATP) by absorbing oxygen and releasing waste products.

Deciduous Forest

A type of forest characterized by trees that lose their leaves seasonally, found in temperate regions that experience warm summers and cold winters.

Pyramid of Biomass

A graphical representation showing the total mass of organisms at each trophic level in an ecosystem.