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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Definitions:

Anxiety

A mental health condition characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Chronic Reaction

Persistent and ongoing response to stress or adverse conditions, potentially leading to long-term psychological or physical health issues.

Stress

The psychological and physical strain or tension experienced by individuals in response to challenging, demanding, or threatening situations.

Rationalization

The process of providing reasonable explanations for behaviors, decisions, or feelings that may otherwise seem unjustifiable.