Albert Company Agreed to Build a Bowling Complex for Pins

question 69

Multiple Choice

Albert Company agreed to build a bowling complex for Pins R Us for a price of $2,000,000.The project is expected to take three years to complete.Albert estimated that the total cost of the project would be $1,600,000.During the first year,construction costs amount to $600,000.If Albert uses the percentage of completion method,how much revenue will be recognized for the first year?

• A)$0.
• B)$150,000.
• C)$600,000.
• D)$750,000.

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Definitions:

Save Each Year

The practice of setting aside a certain portion of income or revenue annually for future use, such as investments or emergency funds.

College Fund

is a savings plan intended to support future college expenses, often established by parents or guardians for their children.

Deposit Today

The act of placing money into a financial account or investment vehicle with the expectation of future returns.

Earn

To earn is to receive money or its equivalent in return for labor, services, or investments made.