Noah Construction Company Is Building a Large Complex for a Contract

question 33

Multiple Choice

Noah Construction Company is building a large complex for a contract price of $5,000,000. This is a three-year project estimated to cost $4,000,000 and the following information is available:
$\begin{array}{llll}(\$ \text { in thousands) } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 }\\\text { Costs incurred } & \$ 1,000 & \$ 1,500 & \$ 1,250 \\\text { Estimated completion costs } & \$ 3,000 & \$ 1,500 & \$ 10 \\\text { Billings } & \$ 750 & \$ 1,750 & \$ 2,500 \\\text { Cash collected } & \$ 500 & \$ 1,500 & \$ 3,000\end{array}$
-Using the percentage-of-completion method of revenue recognition,how much income is recognized in Year 2?

• A)$250,000
• B)$375,000
• C)$625,000
• D)$3,125,000

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Definitions:

Incomplete Grief

When circumstances, such as a police investigation or an autopsy, interfere with the process of grieving.

Grieving Process

A series of emotional and psychological responses that follow the loss of a loved one or a significant life event, often encompassing stages of denial, anger, bargaining, depression, and acceptance.

Never Recovered

A phrase indicating that something or someone did not return to a normal or original state after damage or loss.

Memorials

Structures, objects, or events created or held to remember and honor the memory of a person or event.