Early in 2018,Forest Ltd

question 72

Multiple Choice

Early in 2018,Forest Ltd.signed a contract to construct a warehouse.Forest's management estimated the gross profit on the contract to be $740,000,as indicated by the following:

At the end of 2018,the status of the work on the contract was as follows:

How much revenue can be recognized on this contract for 2018,assuming that Forest uses the
Percentage of completion basis for long-term construction contracts (round to nearest dollar) ?

• A)$333,000
• B)$863,333
• C)$1,575,000
• D)$1,711,957

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