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:

Hypothetical Data

Information or numbers that are assumed or simulated for the purpose of analysis or discussion.

Remittances

Money sent by individuals working abroad to their family or others in their home country.

Dollar Price

The cost or valuation of a good, service, or asset denominated in U.S. dollars.

British Pound

The British Pound is the official currency of the United Kingdom, recognized globally and commonly represented by the symbol £.