Tradel Construction Company Entered into a Contract to Build a Condominium

question 55

Multiple Choice

Tradel Construction Company entered into a contract to build a condominium building for $1,800,000. Construction commenced on July 1, 2011, with a planned completion date of December 31, 2013. A summary of the related accounting information is provided below: How much gross profit would be recognized in 2013 if Tradel uses the completed contract method?

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

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Definitions:

Upward Communication

Upward communication is the flow of information from lower levels of a hierarchy to higher levels, such as from employees to management, facilitating feedback and reporting.

Leaner Channels

Communication methods that involve fewer cues and less information richness, often used in more formal or straightforward exchanges.

Routine Messages

Standardized communications that convey regular, operational information within or between organizations, typically involving procedural or administrative details.

Employee Restraint

The practice of limiting or controlling the actions or freedom of employees, often to comply with organizational policies or legal requirements.