Funtime Corporation Assume That Funtime Corp

question 29

Multiple Choice

Funtime Corporation Assume that Funtime Corp.has agreed to construct a new playground for Durrey County for $2,300,000.Construction of the new playground will begin on March 17,2012 and is expected to be completed in August 2013.At the signing of the contract Funtime Corp.estimates that the it will cost $1,600,000 to build the playground.
At the end of 2012 Funtime provided the following information about the project:
If Funtime uses the percentage of completion to recognize revenue on the long-term contract how much gross margin should Funtime recognize in 2012?

• A) $389,200
• B) $278,000
• C) $556,000
• D) $0

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Definitions:

Nonviolent People

Individuals who prefer peaceful and non-aggressive means to resolve conflicts and achieve their objectives.

Overdetermined

A term used in psychoanalysis to describe a situation or symptom that is caused by several different factors or motives.

Automatic

Processes or responses that occur without conscious control or decision-making, often reflexive or habitual in nature.

Excessive Thought

Engaging in overly repetitive or non-productive thinking, often seen in anxiety or obsessive-compulsive disorders.