Use the Following Information for Questions 80 and 81

question 69

Multiple Choice

Use the following information for questions 80 and 81.
-Horner Construction Co. uses the percentage-of-completion method. In 2014, Horner began work on a contract for $16,500,000; it was completed in 2015. The following cost data pertain to this contract: The amount of gross profit to be recognized on the income statement for the year ended December 31, 2015 is

• A) $2,400,000.
• B) $2,580,000.
• C) $2,700,000.
• D) $6,450,000.

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Definitions:

Individual Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good a single consumer is willing to buy at those prices.

Substitute Goods

Products or services that can replace or substitute each other in use, where an increase in the price of one leads to an increase in demand for the other.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied, illustrating how changes in price influence supplier behaviour.

Supply Curve

A graphical depiction that shows the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to provide, at given prices.