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

---

Definitions:

Population

The total number of individuals or entities within a specified area or group.

Categorical Syllogism

A deductive argument with two premises and three terms, each of which occurs exactly twice in two of the three propositions.

Deductive Argument

A type of logic where specific conclusions are drawn from general principles or premises, with the conclusion necessarily following from the premises.

Deductive Argument

A logical process in which a conclusion follows necessarily from the given premises.