In Year 1 a Contractor Agrees to Build a Building

question 41

Multiple Choice

In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2.The builder's cost is estimated to be $1,800,000.The actual costs year 1 are $900,000 and year 2's actual costs are $1,300,000.Under the completed contract method,the gross profit for year 1 is

• A)$0.
• B)$300,000.
• C)$350,000.
• D)$700,000.

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country over a specified period.

Bureau of Labor Statistics

A division of the U.S. Department of Labor that collects, analyzes, and disseminates essential statistical data on labor economics.

Unemployment Insurance

A government program that provides financial assistance to individuals who are unemployed through no fault of their own.

Spells of Unemployment

Periods during which an individual is out of work and actively seeking employment.