Haven Corp $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 59

Multiple Choice

Haven Corp. contracted to construct a building for $ 750,000. Construction began in 2020 and was completed in 2021. Data relating to the contract follow: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Year ended
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ December 31 .

$\begin{array}{c}\begin{array}{lll}\text {Costs incurred.}\\\text {Estimated costs to complete} \end{array}\begin{array}{r} \underline{2020}\\\$ 300,000 \\200,000\end{array}\begin{array}{r} \underline{2021}\\\$ 230,000\\-\end{array}\end{array}$

Haven uses the percentage-of-completion method. For the calendar years 2020 and 2021, respectively, Haven should report gross profit of

• A) $ 135,000 and $ 85,000.
• B) $ 450,000 and $ 300,000.
• C) $ 150,000 and $ 70,000.
• D) $ 0 and $ 220,000.

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Definitions:

Ion Channel

Protein structures embedded in cell membranes that allow ions to pass in and out of the cell, crucial for various physiological processes.

Impulse Conduction

The process by which electrical signals are transmitted along a neuron, from the dendrites, through the axon, to the synapse.

Myelinated Axons

Axons covered with myelin sheaths which increase the speed at which nerve impulses can travel.

Graded Potential

A local change in electrical potential that varies in magnitude depending on the strength of the applied stimulus