Hayes Construction Corporation Contracted to Construct a Building for $4,500,000

question 97

Multiple Choice

Hayes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2014 and was completed in 2015. Data relating to the contract are summarized below: Hayes uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2014, and 2015, respectively, Hayes should report gross profit of

• A) $810,000 and $540,000.
• B) $2,700,000 and $1,800,000.
• C) $900,000 and $450,000.
• D) $0 and $1,350,000.

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Definitions:

Safety Concerns

Issues or situations that may pose a risk of harm to individuals or communities.

Neutral Location

A place agreed upon by all parties involved where no one has a particular advantage or authority.

Daylight Hours

The period during a 24-hour day when the sun is above the horizon, providing natural light.

Formal Advocacy

The organized effort to influence decision-makers in order to bring about changes in policy, practice, or laws in favor of a specific cause or group.