In Year 1 a Contractor Agrees to Build a Building

question 523

Multiple Choice

In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2. The builder's cost is estimated to be $1,800,000. The actual costs year 1 are $900,000 and year 2's actual costs are $1,100,000. Under the percentage of completion method year 2's gross profit is

• A) $500,000.
• B) $350,000.
• C) $700,000.
• D) $150,000.

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Definitions:

Menstrual Cycle

The regular natural change that occurs in the female reproductive system, leading to menstruation and potential fertility.

Progesterone

A hormone produced in the ovaries, placenta, and adrenal glands that plays a key role in the menstrual cycle and maintaining the early stages of pregnancy.

Uterine Lining

refers to the layer of cells lining the uterus, known as the endometrium, which thickens during the menstrual cycle to prepare for potential pregnancy and sheds during menstruation if pregnancy does not occur.