On 1 January 2016, Romulus Ltd Signed a Contract Worth

Multiple Choice

On 1 January 2016, Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B. The light rail was to be built over three years, with progress payments of $7 000 000 to be made at the end of each year. Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year: The project was completed in December 2018. Using the percentage of completion method, what profit would Romulus Ltd report in 2016?

A) $800 000
B) $2 000 000
C) $3 200 000
D) None of the above