Pont Bridges Corp

question 85

Multiple Choice

Pont Bridges Corp.had signed a contract to build a new bridge for $5,000,000.Initially their estimated total costs were $4,400,000.During the first year, they realized their costs were going to be greater than originally estimated.They now expect total costs to be $5,500,000, but they cannot change the contract price.If Pont uses the percentage-of-completion method to recognize revenue, how much gross profit (loss) related to the project should they recognize in the first year?

• A)($500,000)
• B)($400,000)
• C)$0
• D)$480,000

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Definitions:

Organ of Corti

The Organ of Corti is a structure in the cochlea of the inner ear that contains hair cells, which convert sound vibrations into nerve impulses.

Malleus, Incus, Stapes

The three small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Cochlear Duct

A spiral-shaped cavity in the cochlea that plays a critical role in the process of hearing by converting sound vibrations into neural signals.

Cochlear Duct

A spiral-shaped cavity within the cochlea of the inner ear, playing a crucial role in converting sound vibrations into nerve impulses.