Tradel Construction Company Entered into a Contract to Build a Condominium

question 5

Multiple Choice

Tradel Construction Company entered into a contract to build a condominium building for $1,800,000. Construction commenced on July 1, 2020, with a planned completion date of December 31, 2022. A summary of the related accounting information is provided below: $$\begin{array} { | l | r | r | r | } \hline & \mathbf { 2 0 2 0 } & \mathbf { 2 0 2 1 } & \mathbf { 2 0 2 2 } \\\hline \text { Costs incurred during the year } & 400,000 & 500,000 & 650,000 \\\hline \text { Estimated costs to complete at year end } & 1,200,000 & 600,000 & 0 \\\hline \text { Billings during the year } & 360,000 & 440,000 & 1,000,000 \\\hline \text { Cash collections during the year } & 300,000 & 410,000 & 1,090,000 \\\hline\end{array}$$ How much gross profit would be recognized in 2022 if Tradel uses the completed contract method?

• A)$0
• B)$120,000
• C)$220,000
• D)$250,000

Understand the dynamic nature of self-efficacy and its impact on entrepreneurial performance.

Differentiate between behavior-focused strategies and their applications in entrepreneurship.

Describe the habit loop and its relation to entrepreneurial habits.

Discuss the role of improvisation skills in developing an entrepreneurial mindset.

---

Definitions:

Poor Decisions

Choices made with lack of judgment or information that result in unfavorable outcomes.

Volume-related Measures

Metrics that evaluate performance, capacity, or financial results based on the volume of activities, production, or transactions.

Manufacturing Settings

The environment or scenario where manufacturing processes take place, including all operational aspects like the production line, workers, and machinery.

Allocation Base

It's a measure used to distribute indirect costs to different cost objects, such as products or services.