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

question 22

Multiple Choice

Gleason Construction enters into a long-term fixed price contract to build an office building for $27,000,000. In the first year of the contract Gleason incurs $5,000,000 of cost and the engineers determined that the remaining costs to complete the project are $24,000,000. How much gross profit or loss should Gleason recognize in Year 1 assuming the use of the percentage-of-completion method?

• A) $2,000,000 profit
• B) $2,000,000 loss
• C) $0
• D) $344,828 loss

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Definitions:

Clinicians

Healthcare professionals involved in the direct care and treatment of patients, often within specialties like psychology, nursing, or medicine.

Myers-Briggs Type Indicator

A personality assessment tool that classifies people into 16 unique personality types based on their preferences for perceiving the world and decision-making.

Objective Personality

A concept in psychology that refers to the assessment of an individual's personality based on objective and measurable criteria.

Projective Personality

A type of personality test in which the respondent’s interpretation of ambiguous scenes or stimuli is used to analyze their personality characteristics and underlying thought processes.