In Year 1 a Contractor Agrees to Build a Building

question 108

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 $1,100,000.Under the percentage of completion method year 2's gross profit is

• A)$150,000.
• B)$500,000.
• C)$700,000.
• D)$350,000.

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Definitions:

Hypertensive

Relating to, or suffering from hypertension, which is high blood pressure.

Folic Acid

A B-vitamin essential for cell growth and metabolism, crucial for pregnant women to prevent neural tube defects in the fetus.

Childbearing Age

The period in a person's life, typically ranging from late teens to late 40s, when they are physically capable of conceiving and bearing children.