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:

Matrix Structure

An organizational design that combines functional and project-based structures, allowing for more dynamic team allocation and collaboration.

Project Teams

Groups of individuals with diverse skills and expertise who are brought together to accomplish a specific project goal within a limited timeframe.

Functional Structure

An organizational framework where departments are divided based on their function or role within the company, such as marketing, finance, and human resources.

Geographic Divisionalized Structure

An organizational structure where operations are divided based on geographic regions, with each region operating semi-autonomously to serve its local market effectively.