Use the Following Information to Answers the Following Questions:
During

question 45

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 2021, what amount should Bing recognize as gross profit?

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

---

Definitions:

Constructive Changes

Alterations in work scope or methodology that are suggested or required but not initially outlined in a contract.

Analyze Data

The process of examining datasets to draw conclusions, identify patterns, or make decisions based on the information contained within.

Planned Activities

Tasks or actions that have been scheduled in advance with specific objectives in mind.

Team Building

The process of enhancing social relations and defining roles within teams, often involving collaborative tasks.