Tyco Ltd Entered into a Contract to Build a Sports

question 32

Multiple Choice

Tyco Ltd entered into a contract to build a sports arena for $1,800,000. Construction commenced on August 1, 2011, with a planned completion date of December 31, 2013. A summary of the related accounting information is provided below: How much would the balance in accounts receivable be on the balance sheet of Tyco at the end of 2011 if Tyco uses the percentage of completion method?

• A)$110,000
• B)$60,000
• C)$500,000
• D)$660,000

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Inexpensive

Not costing a lot of money; affordable or cheap.

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