Johann Builders Has a Fixed -Price Contract Providing $120,000 of Revenue.Construction

question 18

Multiple Choice

Johann Builders has a fixed -price contract providing $120,000 of revenue.Construction on the contract was begun in 2013 and was completed in 2014.Information relating to the contract is as follows:

What amount of income should Johann recognize in 2014 assuming that the company appropriately uses the percentage-of-completion method of income recognition?

• A)$9,286
• B)$15,000
• C)$17,000
• D)$7,000

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Definitions:

Hallucinogen

Hallucinogen is a substance that induces alterations in perception, thinking, and emotions, leading to experiences that differ from objective reality.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception and mood.

Amphetamine

A stimulant drug that increases the activity in the central nervous system, boosting energy, concentration, and alertness.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.