Use the Following Information to Answers the Following Questions:
During

question 115

Multiple Choice

Use the following information to answers the following questions:
During 2020, Bing Corp. started a construction job with a total contract price of $ 1,050,000. Bing has consistently used the completed contract method. The job was completed on December 15, 2021. Additional data are as follows:
$\begin{array}{c}\begin{array}{lll}\\\text {Actual costs incurred}\\\text { Estimated remaining costs}\\ \text {Billings to date}\\ \text {Collections to date}\end{array}\begin{array}{r}\underline{2020}\\\$ 405,000\\405,000 \\360,000 \\200,000\end{array}\begin{array}{r}\underline{2021}\\\$ 457,500\\- \\690,000 \\480,000 \end{array}\end{array}$

-For 2020, what amount should Bing recognize as gross profit?

• A) $ 0
• B) $ 120,000
• C) $ 142,500
• D) $ 187,500

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Definitions:

Predictor Variables

Factors in statistical analyses that predict or account for variations in the dependent variable.

Coefficient of Multiple Determination

A statistic used in multiple regression analysis that measures the proportion of variance in the dependent variable that can be predicted from the independent variables.

F-test Statistic

A calculated value used in the F-test to determine whether to reject the null hypothesis comparing the variances of two populations.

Error Terms

Variables in statistical models that account for the difference between observed and predicted values, representing unexplained or random variability.