Rock Aerospace Company Signed a Contract on April 1, Year $\begin{array}{ll}\text { Year 4 } & \$ 5,600,000 \\\text { Year } 5 & \$ 11,200,000 \\\text { Year 6 } & \$ 5,600,000\end{array}$

question 6

Multiple Choice

Rock Aerospace Company signed a contract on April 1, Year 4, to build a satellite for $28,000,000.Estimated costs for the contract are:
$\begin{array}{ll}\text { Year 4 } & \$ 5,600,000 \\\text { Year } 5 & \$ 11,200,000 \\\text { Year 6 } & \$ 5,600,000\end{array}$
$\text { Assume that actual costs incurred coincide with expectations. Cash collections of the contract price are as follows: }$
$\begin{array}{ll}\text { Year } 4 & \$ 4,200,000 \\\text { Year } 5 & \$ 7,000,000 \\\text { Year 6 } & \$ 16,800,000\end{array}$ Refer to the Rock Aerospace Company example.Income from the contract for Year 5 under the percentage-of-completion method is:

• A)$1,000,000
• B)$1,400,000
• C)$2,800,000
• D)$3,360,000
• E)None of the above

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Definitions:

Resource Acquisition

The process of identifying, securing, and allocating resources necessary for the completion of a project or the fulfillment of a goal.

Initial Desire

The first stage of want or interest in something, sparking the beginning of motivation or action towards obtaining or achieving it.

Resource Exchange

The process where entities (individuals, groups, nations) trade resources, including tangible goods and intangible services, based on perceived values.

Initial Encounters

Initial Encounters refer to the first moments or meetings where individuals meet or experience something new, often setting the tone for future interactions or perceptions.