Use the Following Information for Questions

question 48

Multiple Choice

Use the following information for questions.
Kiner, Inc.began work in 2010 on a contract for $8,400,000.Other data are as follows:

-If Kiner uses the percentage-of-completion method, the gross profit to be recognized in 2010 is

• A)$1,440,000.
• B)$1,600,000.
• C)$2,160,000.
• D)$2,400,000.

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Definitions:

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.

Combined Profit

The total profit earned by all firms in a particular market or industry, summed together.

Policies

Principles or rules established by organizations, governments, or groups to guide decisions and achieve rational outcomes.

Policies

Guidelines or principles that direct actions towards specific goals or objectives, often set by governments, organizations, or institutions.