Highrise Constructions Ltd Had a Large Three-Year Project with Total

question 34

Multiple Choice

Highrise Constructions Ltd had a large three-year project with total revenue of $5 000 000 and estimated total costs of $4 200 000.The project was 25 per cent complete at the end of the first year,55 per cent complete at the end of the second year and 100 per cent complete at the end of the third year.Revenues and costs were as estimated.
- How much profit was earned during the third year if the percentage of completion method was used?

• A) $800 000
• B) $440 000
• C) $400 000
• D) $360 000