Yang Construction Company Entered into a Contract to Build a New

question 81

Multiple Choice

Yang Construction Company entered into a contract to build a new airport terminal for $2,500,000.Construction commenced on August 1,2017,with a planned completion date of December 31,2019.A summary of the costs,billings,and collections is provided below:

Yang uses the percentage of completion method.How much gross profit would Yang recognize in 2018?

• A)$100,000 loss
• B)$75,000 loss
• C)$50,000 profit
• D)$100,000 profit

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Definitions:

Sarc/o

Refers to flesh or connective tissue in medical terminology.

Trism

Involuntary muscle spasm of the jaw muscles, leading to difficulty in opening the mouth; often referred to as trismus.

Cancer

A disease characterized by the uncontrolled growth and spread of abnormal cells in the body.

Latin

An ancient Italic language historically spoken in the Roman Empire, now used primarily in Vatican City and as a liturgical language in the Roman Catholic Church.