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:

Authoritative Command

A leadership style characterized by making decisions alone and expecting subordinates to follow instructions without question.

Superior Skill

Exceptional ability or expertise in a particular activity or field, often surpassing average standards.

Conflict Resolution

The process of identifying, addressing, and resolving disputes in a manner that is satisfactory to all parties involved.

Substantive Causes

The underlying or significant reasons that contribute directly to an event, result, or situation.