The Following Data Relate to a Construction Job Started by Worthington

question 19

Multiple Choice

The following data relate to a construction job started by Worthington Co. during 2011:

See Worthington Co. information above. Under the percentage-of-completion method, how much should Worthington recognize as gross profit for 2011?

• A) $0
• B) $40,000
• C) $80,000
• D) $100,000

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Definitions:

Leather Wallets

Small, flat cases made from leather, designed to hold personal items such as cash, credit cards, and identification documents.

Domestic Price

The price of goods or services within a country's domestic market, excluding international transactions.

Free Trade

An economic policy that allows imports and exports between countries with minimal governmental restrictions or tariffs to promote international trade.

World Price

The international market price of a good, influenced by global demand and supply conditions.