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A Construction Firm Was Contracted to Build a Bridge for $100

Question 60

Multiple Choice

A construction firm was contracted to build a bridge for $100 000 000.It is estimated that the total cost will be roughly $95 000 000 spread over five years,but it is unable to estimate reliably the yearly percentage of completion.Under the completed contract method,what amount of profit will be recorded in Year 2?


A) $5 000 000
B) $0
C) $1 000 000
D) none of the above

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