Noyes Construction Corporation Contracted to Construct a Building for $4,500,000

question 42

Multiple Choice

Noyes Construction Corporation contracted to construct a building for $4,500,000. Construction began in 2016 and was completed in 2017. Data relating to the contract are summarized below:
Noyes assumes the performance obligation is satisfied over time. What amount of gross profit should Hayes report for 2016?

• A) $0
• B) $675,000
• C) $810,000
• D) $900,000

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