Refer to LaGrow Developers

question 66

Multiple Choice

Refer to LaGrow Developers.Assuming that LaGrow uses the cost-recovery method,the company would recognize gross profit in 2018 of ________.

• A)$0
• B)$1,500,000
• C)$2,400,000
• D)$2,500,000

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Definitions:

Exact Simple Interest

Interest calculated based on the principal amount for a specific number of days, using a 365-day year.

365-Day Year

A calendar method that assumes each year has 365 days for the purpose of interest calculation, ignoring leap years.

Milling Machine

A tool used in machining processes for shaping metal and other solid materials, utilizing rotary cutters to remove material.

Ordinary Simple Interest

Interest calculated only on the principal amount, not on the interest that accrues over time.