Use the Following Information for Questions 57-58

question 8

Multiple Choice

Use the following information for questions 57-58.
Dinca Construction Co. agreed to build a bridge for Gotham City. The contract specifies that construction will take three years and Dinca will receive $12,500,000. The company expects annual costs to be $3,500,000; $2,750,000; and $1,800,000.
-Assume Dinca uses the percentage of completion method. Revenue recognized in year three will be

• A) $1,800,000.
• B) $2,795,030.
• C) $4,166,667.
• D) $12,500,000.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage.

Investment

The purchase of goods, stocks, or other assets in the hope of generating a financial return.

Compounded Quarterly

Compounded quarterly refers to the calculation and addition of interest to the principal sum of an investment or loan on a quarterly basis, accelerating the growth of the investment's value.

RRSP

A Registered Retirement Savings Plan is a Canadian account for holding savings and investment assets, aimed at retirement planning, with certain tax benefits.