Robin Construction Company Began a Long-Term Contract in 2011

question 78

Multiple Choice

Robin Construction Company began a long-term contract in 2011.The contract price was $600,000.The estimated cost of the contract at the time it was begun was $450,000.The actual cost incurred in 2011 was $300,000.The contract was completed in 2012 and the cost incurred that year was $180,000.Under the percentage of completion method:

• A) Robin should report $300,000 of income in 2011.
• B) Robin should report a $30,000 loss in 2012.
• C) Robin must pay interest (under the look-back method) on the overpayment of taxes in 2011.
• D) Robin should report $60,000 profit on the contract in 2012.
• E) Robin will receive interest (under the look-back method) on the overpayment of taxes in 2011.

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Definitions:

1962

Marks a specific year in the 20th century notable for events such as the Cuban Missile Crisis, which played a critical role in the Cold War.

Neurotransmitter

Chemical substances that transmit nerve impulses across a synapse from one neuron to another.

Neuroleptics

A class of antipsychotic drugs used primarily to treat schizophrenia and other severe mental health conditions by influencing neurotransmitter levels in the brain.

Negative Symptoms

Features typically associated with schizophrenia or similar disorders, characterized by a lack or decrease of normal functions, such as apathy or lack of emotion.