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Use the Following Information for Questions

Question 56

Multiple Choice

Use the following information for questions.
In 2017, Hip-hop Inc.began a three year construction contract for $7,000,000.Hip-hop uses the percentage-of-completion method.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial statement presentation relating to this contract for calendar 2017 follow: Use the following information for questions. In 2017, Hip-hop Inc.began a three year construction contract for $7,000,000.Hip-hop uses the percentage-of-completion method.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial statement presentation relating to this contract for calendar 2017 follow: -How much cash was collected in 2014 on this contract? A) $50,000 B) $340,000 C) $400,000 D) $600,000
-How much cash was collected in 2014 on this contract?


A) $50,000
B) $340,000
C) $400,000
D) $600,000

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