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Carbon Corporation Had a $2,000,000 Contract to Build a Small

Question 5

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Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period: Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period: Under the percentage-of-completion method, how much profit should Carbon recognize in year 1? A) $0 B) $75,000 C) $100,000 D) $400,000
Under the percentage-of-completion method, how much profit should Carbon recognize in year 1?


A) $0
B) $75,000
C) $100,000
D) $400,000

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