On 1 January 2014,Peter Ltd Signed a Contract Worth $64

question 29

Multiple Choice

On 1 January 2014,Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium.The stadium was to be built over three years,with progress payments as follows: Estimated costs were $50 000 000.The project was 35 per cent complete at the end of 2014,75 per cent complete at the end of 2015 and 100 per cent complete at the end of 2016.Revenues and costs were as estimated.
-How much profit was earned during 2014 if the percentage of completion method was used?

• A) $3 281 250
• B) $4 200 000
• C) $4 900 000
• D) $5 600 000

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Definitions:

Monopolies

Market structures where a single seller dominates the market, facing no competition and controlling prices.

Standard Oil Company

A U.S. company founded by John D. Rockefeller in 1870, which became a dominant force in the American petroleum industry until it was broken up by the U.S. Supreme Court in 1911 due to antitrust laws.

John D. Rockefeller

An American industrialist and philanthropist who was a co-founder of the Standard Oil Company and became one of the world's wealthiest individuals and major philanthropists.

Trust

Confidence in the reliability, truth, ability, or strength of someone or something.