Southview Construction Company Enters into a Contract to Build a 30

question 102

Multiple Choice

Southview Construction Company enters into a contract to build a 30 mile cross country ski trail for $36,000 in the current year. Southview estimates the cost of building the trail to be $12,000. During the first year, Southview completes 10 miles of trail at a cost of $5,000. Southview receives $13,000 in advanced payments on the contract price in the first year. How much gross income must Southview recognize from the construction project in the first year?

• A)$- 0 -
• B)$5,000
• C)$12,000
• D)$13,000
• E)$15,000