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:

Intermediate Plate

A component positioned between major parts in a mechanical assembly, such as between the pressure plate and flywheel in a clutch system, serving as a stabilization or additional friction surface.

Flywheel Drive Pins

Metal pins that connect the flywheel to the crankshaft, transferring rotary motion and aiding in engine torque management.

Circumference Notches

Markings or cuts made around the periphery or edge of a circular object, possibly for measurement, alignment, or fitting purposes.

Internal Adjusting Ring

A component within a mechanical assembly used to adjust the tension or clearance between parts, often found in bearings or brake systems.