In Year 1 a Contractor Agrees to Build a Building

question 108

Multiple Choice

In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2.The builder's cost is estimated to be $1,800,000.The actual costs year 1 are $900,000 and year 2's actual costs are $1,100,000.Under the percentage of completion method year 2's gross profit is

• A)$150,000.
• B)$500,000.
• C)$700,000.
• D)$350,000.

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Definitions:

Eyelid

A fold of skin that covers and protects the eye.

Macular Degeneration

A medical condition which may result in blurred or no vision in the center of the visual field due to damage to the macula.

Cataracts

A common eye condition where the lens of the eye becomes progressively opaque, leading to blurred vision.

Glaucoma

A group of eye conditions that damage the optic nerve, often due to abnormally high pressure in the eye, leading to vision loss.