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

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Definitions:

Assimilation

The cognitive process of incorporating new information into existing cognitive structures, frameworks, or understanding.

Securely Attached

Refers to an attachment style characterized by confidence in relationships, comfort with emotional closeness, and the ability to seek and offer support when needed.

Strangers

Strangers are individuals who are not known or familiar, often encountered in social settings where there is no prior knowledge or interactions between the parties.

Comforted

Being comforted refers to receiving emotional support or reassurance in times of stress or sadness.