Exhibit 17-1 in 2014, Omega Construction Began Work on a Contract

question 60

Multiple Choice

Exhibit 17-1 In 2014, Omega Construction began work on a contract with a price of $850,000 and estimated costs of $595,000. Data for each year of the contract are as follows:

- Refer to Exhibit 17-1. Under the percentage-of-completion method of revenue recognition, gross profit in 2014 would be

• A) $102,000
• B) $260,000
• C) $255,000
• D) $425,000