Luke's Construction Receives a Contract to Build a Bridge for $6

question 63

Multiple Choice

Luke's Construction receives a contract to build a bridge for $6 000 000,with an estimated cost of $4 000 000.Over the three-year construction period,the costs are estimated to be $500 000 in Year 1,$3 200 000 in Year 2 and $300 000 in Year 3.How much construction revenue would be reported in Year 2 using the percentage of completion method?

• A)$2 300 000
• B)$2 800 000
• C)$4 800 000
• D)$3 200 000