Exhibit 17-1 The Following Information Relates to a Project of the Cumberland

Multiple Choice

Exhibit 17-1
The following information relates to a project of the Cumberland Construction Company: The contract price was $1,200,000. Cumberland uses the cost-to-cost method of revenue recognition.
-Refer to Exhibit 17-1. Assume revenue in the amount of $200,000 was recognized in 2016. What amount of revenue would be recognized in 2017?

A) $840,000
B) $640,000
C) $616,000
D) $416,000