Bluegrass Builders Ltd $\text{Costs incurred to date}\ldots \ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \$925,000$

question 9

Multiple Choice

Bluegrass Builders Ltd. Is using the completed-contract method for a $ 2,000,000 contract that will take two years to complete. Data at December 31, 2020, the end of the first year, are $\text{Costs incurred to date}\ldots \ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \$925,000$
$\text{Estimated costs to complete}\ldots \ldots \ldots \ldots \ldots \ldots \ldots1,100,000$
$\text{Billings to date}\ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \ldots \ldots \ldots\ldots 850,000$
$\text{Collections to date}\ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \ldots \ldots 700,000$
The gross profit or loss that should be recognized for 2020 is

• A) $ 50,000 gross profit.
• B) $ 25,000 gross profit.
• C) $ 25,000 loss.
• D) $ 0.

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Definitions:

Widow's Peak

A V-shaped point on the human forehead hairline due to a specific genetic trait.

Straight Hairline

A form of hairline where the hair grows in a straight line across the forehead.

Recessive

A genetic trait that is expressed only when two copies of the gene are present, not seen when a dominant gene is present.

Phenotypic Ratio

The proportion of different phenotypes observed in the offspring of a particular genetic cross.