Percentage of the completion method


This year, a contractor agrees to build a building for $2,500,000 by the end of next year. The builder's cost is estimated to be $1,800,000. The actual costs this year are $900,000 and next year's actual costs are $1,300,000. Under the percentage of completion method this year's gross profit is

a. $0.

b. $300,000.

c. $350,000.

d. $700,000.

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Accounting Basics: Percentage of the completion method
Reference No:- TGS096324

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