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Karr Construction Built a Levee for the State of Mississippi

Question 85

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Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $1,200,000. The costs incurred by Karr and the payments from the state over the three year period are as follows:
Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $1,200,000. The costs incurred by Karr and the payments from the state over the three year period are as follows: If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2011? a. $600,000 b. $400,000 c. $300,000 d. $150,000 If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2011?
a. $600,000
b. $400,000
c. $300,000
d. $150,000

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