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

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Definitions:

Biologically Based Drives

Innate urges stemming from biological needs, such as hunger, thirst, and the desire for sexual activity.

Longitudinal Research

A research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time.

Cross-Sectional Research

A research design in which data is collected from a population, or a representative subset, at one specific point in time to examine a phenomenon.

Correlation

A statistical measure that represents the extent to which two or more variables fluctuate together, though it does not imply causation.