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

question 24

Multiple Choice

Tullis Construction enters into a long-term fixed price contract to build an office tower for $13,000,000. 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 $4,000,000 in year 1 and collected $3,200,000 by the end of the end of the year. Refer to Tullis Corporation. How much should revenue should Tullis recognize at the end of Year 1 assuming the use of the zero-gross-profit approach?

• A) $0
• B) $3,000,000
• C) $4,000,000
• D) $10,000,000

---

Definitions:

Personal Spheres

Involve the distinct areas or aspects of an individual's life that are considered private and personal, often protected from external intrusion or scrutiny.

Social Coordination

The process by which individuals manage their interactions and activities with others to achieve shared goals, involving communication, joint attention, and mutual adjustment.

Preferences

Individual choices or inclinations towards certain options over others, often based on personal taste or value.

Social Domain Theory

The theory that the moral domain, the social conventional domain, and the personal domain have distinct rules that vary in how broadly the rules apply and in what happens when they are broken.