Use the Information Below to Answer the Following Questions:
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question 27

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2010, Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from here to there. The light rail was to be built over 3 years, with progress payments of $7 000 000 to be made at the end of each year. Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year:
$\begin{array}{llcc} & \text {\$ } \\ \text {2010 } &\$ 8000000 \\ \text { 2011 } &\$ 5000000 \\ \text { 2012} &\$ 2000000 \\ \text { } &\\ \text { } &\\\end{array}$

The project was completed in December 2012.
-Using the percentage of completion method,what profit would Romulus Ltd report in 2012?

• A) $7 000 000
• B) $6 000 000
• C) $800 000
• D) $280 000.

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Definitions:

Ovulation

The phase of the menstrual cycle during which a mature egg is released from the ovary into the fallopian tube for potential fertilization.

Uterus

A muscular, hollow, pear-shaped organ of the female reproductive tract in which a fertilized ovum develops into a baby.

Syphilis

A communicable venereal disease spread by sexual contact.