Smile Operators Entered into a Contract to Build a Swimming

question 34

Multiple Choice

Smile Operators entered into a contract to build a swimming complex for $1,800,000.Construction commenced on July 1,2017,with a planned completion date of December 31,2019.A summary of the related accounting information is provided below:

How much gross profit would be recognized in 2018 if the company uses the completed contract method under ASPE?

• A)$0
• B)$120,000
• C)$220,000
• D)$250,000

---

Definitions:

Continue Statement

In programming, the continue statement skips the current iteration of a loop (for, while, do while) and proceeds with the next iteration.

Loop-continue Test

A test within loop iterations to decide whether to continue with the next iteration or exit the loop.

Counter-controlled

Refers to loops that execute a specific number of times, using a counter to track iterations.

While Loop

A control flow statement that allows code to be executed repeatedly based on a given Boolean condition.