Use the Following Information for Questions 73 and 74

question 70

Multiple Choice

Use the following information for questions 73 and 74.
In 2015, Fargo Corporation began construction work under a three-year contract. The contract price is $4,800,000. Fargo uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2015, follow:
-What was the initial estimated total income before tax on this contract?

• A) $600,000
• B) $640,000
• C) $800,000
• D) $960,000

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Definitions:

Synaptic Neurons

Neurons that are capable of transmitting a nerve impulse across a synapse to a postsynaptic element, such as another nerve, muscle, or gland.

Efferent Neurons

Nerve cells that carry neural impulses away from the central nervous system toward muscles to cause movement, also known as motor neurons.

Afferent Neurons

Nerve cells that carry sensory information from the body's tissues and organs to the brain or spinal cord.

Spinal Cord

The central nerve column that runs down the back and transmits messages between the brain and the rest of the body.