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 percentage of completion method.Revenue recognized in year three will be:

A) $1,800,000
B) $2,795,030
C) $4,166,667
D) $12,500,000