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:

Angina Pectoris

A condition characterized by chest pain or discomfort due to coronary heart disease, where blood flow to the heart muscle is restricted.

Myocardium

The muscular tissue of the heart that is responsible for heart contractions to pump blood throughout the body.

Oxygen

A chemical element that is crucial for life, necessary for respiration in humans and animals, and plays a vital role in combustion.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, leading to restricted blood flow.