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The Percentage of Completion Profit for a Particular Project of Redgate

Question 6

Multiple Choice

The percentage of completion profit for a particular project of Redgate Ltd was $200 000 for year 1 and $220 000 for year 2 (completion) .
-What difference would there be to the total profit for the two years if the completion of production method were used?


A) Profit would be $200 000 higher.
B) Profit would be $420 000 higher.
C) Profit would be $420 000 lower.
D) There would be no difference.

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