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

---

Definitions:

Sins of Omission

Failures to act that result in negative outcomes or harm, often discussed in ethical or moral contexts.

Risky Shifts

A phenomenon observed in group decision-making processes, where groups tend to make riskier decisions than individuals would when alone.

Original Experiments

Experimental studies or research designed to test hypotheses by manipulating variables in a controlled environment for the first time.

Polarizing Impact

The effect of intensifying differences and divisions within a group or between groups, often leading to a heightened state of conflict or disagreement.