Use the Following Information for Questions

question 55

Multiple Choice

Use the following information for questions.
Eilert Construction Company had a contract starting April 2011, to construct a $15,000,000 building that is expected to be completed in September 2012, at an estimated cost of $13,750,000.At the end of 2011, the costs to date were $6,325,000 and the estimated total costs to complete had not changed.The progress billings during 2011 were $3,000,000 and the cash collected during 2011 was $2,000,000.Eilert uses the percentage-of-completion method.
-For the year ended December 31, 2011, Eilert would recognize gross profit on the building of

• A)$0.
• B)$527,083.
• C)$575,000.
• D)$675,000.