On 1 January 2014, Peter Ltd Signed a Contract Worth

question 22

Multiple Choice

On 1 January 2014, Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium. The stadium was to be built over three years, with progress payments as follows:

Estimated costs were $50 000 000. The project was 35 per cent complete at the end of 2014, 75 per cent complete at the end of 2015 and 100 per cent complete at the end of 2016. Revenues and costs were as estimated. How much profit was earned during 2015 if the percentage of completion method was used?

• A) $5 600 000
• B) $4 375 000
• C) $3 500 000
• D) $10 500 000

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Definitions:

Recognition

Ability to identify a previously encountered stimulus.

Major Term

In a categorical syllogism, the term that occurs in the predicate of the conclusion.

Syllogism

An argument involving a sequence of three propositions where the first two serve as the basis for the third, demonstrating a logical relationship.

Mammals

Warm-blooded vertebrate animals characterized by the presence of mammary glands, which females use to nurse their young; also notable for having hair or fur.