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

question 51

Multiple Choice

Tullis Construction enters into a long-term fixed price contract to build an office tower for $11,000,000. 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 $3,200,000 by the end of the end of the year. Refer to Tullis Corporation. How much gross profit should Tullis recognize in Year 1 assuming the use of the completed-contract method?

• A) $0
• B) $2,300,000
• C) $3,000,000
• D) $8,000,000

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Definitions:

Branching Mechanisms

Control structures in programming that allow the execution path of a program to change based on conditions or values.

For Statement

A for statement is a control flow statement in programming that iterates a part of the code a specific number of times based on a condition.

Do…while Statement

A control flow statement that executes a block of code at least once and then repeatedly executes the block as long as a given condition remains true.

Branching Mechanisms

The feature in programming and version control systems that allows for the divergence from the main line of development, to experiment or to work on different tasks simultaneously.