Brierton Company Enters a Contract at the Beginning of Year

question 82

Multiple Choice

Brierton Company enters a contract at the beginning of year 1 to build a new federal courthouse for a price of $16 million. Brierton estimates that total cost of the project will be $12 million, and will take four years to complete.
$$\begin{array} { | l | c | c | } \hline & \text { Costs incurred } & \begin{array} { c } \text { Payments from federal } \\\text { government }\end{array} \\\hline \text { Year 1 } & \$ 4 \mathrm { M } & \$ 2 \mathrm { M } \\\hline \text { Year 2 } & \$ 4 \mathrm { M } & \$ 2 \mathrm { M } \\\hline \text { Year 3 } & \$ 2 \mathrm { M } & \$ 6 \mathrm { M } \\\hline \text { Year 4 } & \$ 2 \mathrm { M } & \$ 6 \mathrm { M } \\\hline\end{array}$$
-If Brierton used percentage-of-completion method to account for this project, what would they have reported as profit in year 2?

• A) $ 0
• B) $ 1.333M
• C) $ 1.5M
• D) $ 0.667M

Understand the role and impact of early American political parties and movements on national politics.

Analyze the causes, progress, and consequences of key political realignments and reforms in American history.

Examine the ideological and political differences between major American political parties in the 19th century.

Identify the events and legislation that escalated tensions leading to the Civil War.

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