Use the Information Below to Answer the Following Questions:
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question 53

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2010, Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium. The stadium was to be built over three years, with progress payments as follows:
$$\begin{array} { r r } & \$ \\\text { 31 December 2010 } & \$ 15000000 \\\text { 31 December 2011 } & \$ 20000000 \\\text { 31 December 2012 } & \$ 29000000\end{array}$$
Estimated costs were $50 000 000. The project was 35% complete at the end of 2010, 75% complete at the end of 2011, and 100% complete at the end of 2012. Revenues and costs were as estimated.
-What profit was earned during 2012 if the percentage of completion method was used?

• A) $3 500 000
• B) $5 600 000
• C) $6 343 750
• D) $14 000 000.

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Definitions:

Adopted on Impulse

refers to making a purchase or decision based on spontaneous desire rather than careful thought.

Regression Stage

A phase of development or transition characterized by a return to earlier patterns of behavior, often as a response to stress or trauma.

Trickle-across Effect

A trend diffusion process where fashion and ideas move horizontally within similar social levels or groups.

Class Structure

The organization of society into hierarchies based on socioeconomic status, class, or other distinctions.