Use the Following Information for Questions

Multiple Choice

Use the following information for questions:
Dudeck Construction Co.agreed to build a bridge for Genoa City.The contract specifies that construction will take three years and Dudeck will receive $12,500,000.The company expects annual costs to be $3,500,000; $2,750,000; and $1,800,000.
-Assume Dudeck uses the completed contract method.Expenses recognized in year two will be:

A) $ -0-
B) $2,750,000
C) $2,683,333
D) $8,050,000