In Year 1,a Contractor Agrees to Build a Building for $2,500,000

question 46

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 in 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 1 is

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

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Definitions:

Practical Wisdom

The ability to make sound judgments and decisions based on experience and understanding, particularly in everyday matters.

Thinking Process

A cognitive operation involving reasoning, problem-solving, and decision-making, where an individual engages in mental activities to analyze information and come to conclusions.

Digital Divide

The gap between individuals who have access to modern information and communication technology and those who do not.

Technical Class

A segment of the workforce with specialized technical skills and knowledge, often associated with fields such as engineering, information technology, and applied sciences.