Lagory Co Started a Contract in June 2011 to Build a a Bridge

question 14

Multiple Choice

Lagory Co. started a contract in June 2011 to build a bridge at a fixed price of $14 million. The bridge was to be completed by October 2013. Total cumulative costs incurred by the end of December 2011 and 2012 were $2 million and $6 million, respectively. Lagory Co. is unable to estimate the total costs of the project prior to completion. Final costs at the end of the project totalled $11 million. How much revenue will Lagory Co. report in 2012?

• A)$2,000,000
• B)$3,000,000
• C)$4,000,000
• D)$14,000,000

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Definitions:

Aerobic Respiration

A metabolic process in which cells convert glucose and oxygen into energy, carbon dioxide, and water.

ATP

ATP, or adenosine triphosphate, is the primary energy carrier in cells, providing energy for many biochemical cellular processes.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate.

Mitochondrion

Double-membraned organelle that produces ATP by aerobic respiration in eukaryotes.