Hayes Construction Corporation Contracted to Construct a Building for $1,500,000

question 1

Multiple Choice

Hayes Construction Corporation contracted to construct a building for $1,500,000.Construction began in 2010 and was completed in 2011.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, 2010, and 2011, respectively, Hayes should report gross profit of

• A)$270,000 and $180,000.
• B)$900,000 and $600,000.
• C)$300,000 and $150,000.
• D)$0 and $450,000.

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Definitions:

Thorough Diagnosis

An in-depth analysis or assessment of a situation to identify problems or areas for improvement, often prior to taking action or formulating a strategy.

Generic Change Program

A broad-based initiative aimed at implementing change within an organization, not tailored to specific needs.

Time Saving

Strategies or methods that reduce the amount of time needed to complete a task or achieve a goal.

Continuity

The uninterrupted maintenance, operation, or existence of something over a period of time.