Gleason Construction Enters into a Long-Term Fixed Price Contract to Build

question 108

Multiple Choice

Gleason Construction enters into a long-term fixed price contract to build an office building for $20,000,000.In the first year of the contract,Gleason incurs $6,000,000 of cost and the engineers determined that the remaining costs to complete are $10,000,000.How much revenue should Gleason recognize in Year 1 assuming the use of the zero-gross -profit approach?

• A)$0
• B)$6,000,000
• C)$7,500,000
• D)$10,000,000

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Definitions:

Package Carrier Delivery

A specialized service provided by companies for shipping parcels and packages directly to recipients or specific destinations.

Endocrine Organ

Glands that secrete hormones directly into the bloodstream to regulate processes such as growth, metabolism, and reproductive functions.

Hormonal Communications

A process within the endocrine system where glands produce hormones that are released into the bloodstream to regulate bodily functions.

Neural Communications

The process by which neurons transmit signals through synapses to communicate with other neurons, muscles, or glands.