On 1 January 2016, Romulus Ltd Signed a Contract Worth

question 5

Multiple Choice

On 1 January 2016, Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B. The light rail was to be built over three years, with progress payments of $7 000 000 to be made at the end of each year. Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year: The project was completed in December 2018. Using the percentage of completion method, what profit would Romulus Ltd report in 2016?

• A) $800 000
• B) $2 000 000
• C) $3 200 000
• D) None of the above

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Definitions:

Stressful Events

Situations or occurrences that cause tension or anxiety.

Specific And Temporary

Refers to actions or measures that are designed for a particular purpose and intended to last for a limited period.

Dissociative Disorder

A type of psychological disorder characterized by a disruption of and/or discontinuity in the normal integration of consciousness, memory, identity, emotion, perception, body representation, motor control, and behavior.

Memory Loss

The inability to recall past events, information, or experiences. This can be temporary or permanent, and vary from mild to severe.