Guitar Construction Corp

Multiple Choice

Guitar Construction Corp.contracted to construct a building for $1,500,000.Construction began in 2014 and was completed in 2015.Data relating to the contract follow: Revenue Recognition 6 - 17 Guitar uses the percentage-of-completion method.For the calendar years 2014 and 2015, respectively, Guitar should report gross profit of

A) $270,000 and $170,000.
B) $900,000 and $600,000.
C) $300,000 and $140,000.
D) $0 and $440,000.