The Following Data Relate to a Construction Job Started by Harrington

question 56

Multiple Choice

The following data relate to a construction job started by Harrington Co.during 2014:

-See Harrington Co.information above.Under the completed-contract method,how much should Harrington recognize as gross profit for 2014?

• A) $0
• B) $30,000
• C) $40,000
• D) $90,000

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Definitions:

Quarterly

Occurring or done every three months.

Compounded

A method of calculating interest where previously earned interest is added to the principal amount, and then future interest is calculated on the new total.

Quarterly

Occurring every three months or four times a year.

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.