Use the Following Information for Questions 76 and 77

question 10

Multiple Choice

Use the following information for questions 76 and 77.
Gomez, Inc. began work in 2014 on contract #3814, which provided for a contract price of $14,400,000. Other details follow:
-Assume that Gomez uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2015 is

• A) $1,800,000.
• B) $2,700,000.
• C) $4,650,000.
• D) $14,400,000.

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Definitions:

Landlord

The owner of a property who leases it to a tenant under a rental agreement, responsible for maintaining the property and adhering to the lease terms.

Tenants

Tenants are individuals who occupy land or property rented from a landlord.

Common Areas

Spaces within a building or property that are available for use by all occupants or members, such as lobbies, corridors, and recreational facilities.

Tort Law

A branch of civil law that deals with situations where a person's behavior has unlawfully caused harm or suffering to another person, resulting in legal liability.