This Year,a Contractor Agrees to Build a Building for $2,000,000,which

question 111

Multiple Choice

This year,a contractor agrees to build a building for $2,000,000,which will be completed by the end of next year.The builder's cost is estimated to be $1,700,000.The actual costs this year are $800,000 and next year's actual costs are $800,000.If the tax rate is 20% and the interest rate is 10%,the look back interest for the percentage of completion method is

• A)$ 0.
• B)$1,176.
• C)$2,000.
• D)$6,000.

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Definitions:

Combust

To catch fire or burn; a process of burning or combustion.

Fusible Plug

A safety device consisting of a metal plug with a fusible alloy that melts at a specific temperature, used to release pressure or fluids to prevent damage or explosions.

Fire Safety

Practices and measures designed to prevent, mitigate, and ensure safety against fire hazards in various settings.

Underhood Fire

A fire that occurs within the engine compartment of a vehicle, often caused by electrical faults or leaks of flammable fluids.