Use the Following Information for Questions

question 11

Multiple Choice

Use the following information for questions
In 2010, Rupp Corporation began construction work under a three-year contract.The contract price is $3,500,000.Rupp 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, 2010, follow:

-What was the initial estimated total income before tax on this contract?

• A)$381,430.
• B)$405,231.
• C)$864,706.
• D)$650,204.

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Definitions:

Traumatic Experience

An event that is emotionally painful, distressful, or shocking, which can result in lasting mental and physical effects.

Flashbulb Memory

Highly detailed, exceptionally vivid memories of a significant event, which seem to be recorded in the mind as though with the flash of a camera.

High School Graduation

The completion of the educational curriculum required by a high school, culminating in the receipt of a diploma.

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, stabilizing and storing information over time.