Tullis Construction Enters into a Long-Term Fixed Price Contract to Build

question 91

Multiple Choice

Tullis Construction enters into a long-term fixed price contract to build an office tower for $15,000,000. In the first year of the contract. Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete are $5,000,000. Tullis billed $3,700,000 in year 1 and collected $3,100,000 by the end of the end of the year. Refer to Tullis Construction. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage-of-completion method? (Do not round intermediary calculations, and round your final answer to the nearest whole dollar.)

• A) $0
• B) $2,625,000
• C) $8,300,000
• D) $600,000

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Definitions:

Depigmentation

Depigmentation involves loss of skin color due to the absence or decrease of melanin, often visible in conditions such as vitiligo.

Dermatoses

A general term for any skin disease or disorder.

Allergens

Substances that can trigger an allergic reaction in sensitive individuals, ranging from pollen and pet dander to certain foods and chemicals.

Cow's Milk

The milk obtained from dairy cows, a common beverage and source of dairy products, but can cause allergies in some individuals.