The Marco Company Uses the Percentage-Of-Completion Method and the Cost-To-Cost

Multiple Choice

The Marco Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Marco expects total revenues of $260,000 and total costs of $200,000. During the first year, Marco incurred costs of $50,000 and billed the customer $30,000 under the contract. At what net amount should Marco's Construction in Progress for this contract be reported at the end of the first year?

A) $30,000
B) $35,000
C) $50,000
D) $65,000