In Year 1 a Contractor Agrees to Build a Building

question 75

Multiple Choice

In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2.The builder's cost is estimated to be $1,800,000.The actual costs year 1 are $900,000 and year 2's actual costs are $1,300,000.Under the completed contract method the gross profit for year 2 is

• A)$0.
• B)$300,000.
• C)$350,000.
• D)$700,000.

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Definitions:

Transform Objects

The act or process of changing the form, appearance, or function of objects, often through creative or imaginative efforts.

Crystallized Intelligence

Represents the facet of intelligence involving the ability to use learned knowledge and experience.

Capital

The wealth, whether in money or assets, that is used or invested to generate more wealth.

Gardner's Theory

Refers to Howard Gardner's theory of multiple intelligences, which proposes that people have different kinds of intelligences, such as linguistic, logical-mathematical, and musical, among others.