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:

Integrated System

A cohesive combination of processes, methods, or units working together towards a common goal, often enhancing overall efficiency or functionality.

Mental Phenomena

Any cognitive, emotional, and perceptual experiences or activities of the mind.

Brain Structures

The distinct anatomical parts of the brain, each having specialized functions, such as the cerebellum for coordination and the hippocampus for memory.

Pituitary Gland

A small gland at the base of the brain that produces hormones influencing various physiological processes including growth, reproduction, and metabolism.