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

question 28

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 for Year 1 are $900,000 and Year 2's actual costs are $1,100,000.Under the percentage of completion method Year 1's gross profit is

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

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Definitions:

Nonaggression Pact

A nonaggression pact is an agreement between two or more countries to not engage in military action against each other for a specified period of time.

Soviet Union

A socialist state in Eurasia that existed from 1922 to 1991, characterized by a single-party system led by the Communist Party.

Grand Alliance

Historically refers to the major coalition formed of European powers against Louis XIV of France in the late 17th century or the alliance of Britain, the Soviet Union, and the United States during World War II.

Soviet Union

A former federal socialist state in Eurasia that existed from 1922 to 1991, composed of multiple republics, and was governed by the Communist Party.