This Year, a Contractor Agrees to Build a Building for $2,000,000

question 437

Multiple Choice

This year, a contractor agrees to build a building for $2,000,000, which will be completed by the end of next year. The builder's cost is estimated to be $1,700,000. The actual costs this year are $800,000 and next year's actual costs are $800,000. If the tax rate is 20% and the interest rate is 10%, the look back interest for the percentage of completion method is

• A) $0.
• B) $1,176.
• C) $6,000.
• D) $2,000.

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Definitions:

Cause Marketing

A partnership between a for-profit business and a non-profit organization for mutual benefit, leveraging the marketing effort to support a social cause or charity.

Person Marketing

Use of efforts designed to attract the attention, interest, and preference of a target market toward a person.

Organization Marketing

Marketing strategy that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization.

Place Marketing

Attempt to attract people to a particular area, such as a city, state, or nation.