The Percentage of Completion Profit for a Particular Project of Redgate

question 25

Multiple Choice

The percentage of completion profit for a particular project of Redgate Ltd was $200 000 for year 1 and $220 000 for year 2 (completion) .
-What difference would there be in profit for year 1 if the completion of production method were used?

• A) Profit would be $200 000 higher.
• B) Profit would be $200 000 lower.
• C) There would be no difference.
• D) It cannot be determined from the above information.