Long Company Entered into a Contract to Build an Office

question 68

Multiple Choice

Long Company entered into a contract to build an office building for $9,000,000. fte project is expected to be completed in two years at an estimated total cost of $6,000,000. Actual expenses incurred in each year were $2,000,000 and $3,000,000. fte income reported by Long Company for the first year would be:

• A) $0 under the percentage-of-completion method and $0 under the completed- contract method
• B) $1,000,000 under the percentage-of-completion method and $0 under the completed-contract method
• C) $1,500,000 under the percentage-of-completion method and $0 under the completed-contract method
• D) $2,500,000 under the percentage-of-completion method and $0 under the completed-contract method

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Definitions:

Content Access

Refers to the ability to retrieve and consume any piece of information or media online or through other digital means.

Music Recording

The process of capturing and preserving sound, particularly musical performances, onto storage media for later playback.

Social Environments

The immediate physical and social setting in which people live or in which something happens or develops, including the culture that the individual was educated or lives in.

Mass Media

Refers to various platforms through which information and entertainment are disseminated to the general public, including television, radio, newspapers, and the internet.