In 2017, Dygress Construction Co

question 59

Multiple Choice

In 2017, Dygress Construction Co. began work on a contract for $16,500,000; it was completed in 2018. The following cost data pertain to this contract: Assuming the performance obligation is satisfied over time, what is the amount of gross profit to be recognized on the income statement for the year ended December 31, 2018?

• A) $2,400,000
• B) $2,695,000
• C) $4,050,000
• D) $6,450,000

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Definitions:

Self-serving Rationalizations

Justifications an individual creates to defend actions or decisions that serve their own interests, often at the expense of truth.

True Intentions

The genuine or actual motivations and goals behind an individual's or group's actions, often as contrasted with stated or apparent objectives.

Alternatives

Refers to the various options or choices available to individuals or organizations when faced with making a decision.

Propensity

A natural inclination or tendency to behave in a particular way.