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

question 96

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, the balance in Construction in Progress at the end of 2015 would be

• A) $557,600
• B) $659,600
• C) $680,000
• D) $782,000

---

Definitions:

Midpoint Formula

A method used to calculate the elasticity of demand or supply by averaging the start and end points of a range.

Price Elasticity

A gauge for the sensitivity of the amount of a good that is demanded or offered to alterations in its pricing.

Quantity Supplied

The amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period.

Elasticity of Labor Supply

A measure of the response of labor supplied to a change in the price of labor.