Use the Following Information for Questions 73 and 74

question 67

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:
-How much cash was collected in 2015 on this contract?

• A) $200,000
• B) $280,000
• C) $40,000
• D) $480,000

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Definitions:

Cuddliness

The quality of being affectionate and huggable, often used to describe how comfortable and comforting something or someone feels.

Anesthetics

Substances used to induce loss of sensation or consciousness during medical procedures.

Sedatives

Sedatives are a class of drugs that slow brain activity, used for calming the nervous system and inducing sleep or relaxation.

Pain Medication

Drugs or substances specifically used to relieve pain, ranging from over-the-counter analgesics to prescription opioids.