The Naples Company Uses the Percentage-Of-Completion Method and the Cost-To-Cost

Multiple Choice

The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts.On one such contract, Naples expects total revenues of $260, 000 and total costs of $200, 000.During the first year, Naples incurred costs of $50, 000 and billed the customer $30, 000 under the contract.At what net amount should Naples' Construction in Progress for this contract be reported at the end of the first year?

A) $30, 000
B) $35, 000
C) $50, 000
D) $65, 000