Question: 3. During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional

3. During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows:

2014 2015

Actual costs incurred during the year $5,400,000 $6,100,000

Estimated remaining costs 5,400,000

Billed to customer 4,800,000 9,200,000

Received from customer 4,000,000 9,600,000

Under the completed-contract method, what amount should Gates recognize as gross profit for 2015? SHOW WORK PLEASE

a. $900,000

b. $1,250,000

c. $1,900,000

d. $2,500,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

In 2 0 2 4 , Gates Corp. started a construction job with a total contract price of $ 2 1 , 0 0 0 , 0 0 0 . The job was completed on December 1 5 , 2 0 2 5 . Additional data are as follows: Actual...

During 2007, Eaton Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred...

explain your answer. 13. During 2007, Eaton Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007...

con i PES 13. During 2007, Eaton Corp. started a construction job with a total contract price of $7.000.000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual...

Question 13 5 pts 13. During 2007, Eaton Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008...

During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows: 2014 2015 Actual costs...

In 2 0 2 4 , Sheridan Corp. started a construction job with a total contract price of $ 1 7 5 0 0 0 0 0 . The job was completed on December 1 5 , 2 0 2 5 . Additional data are as follows: \ table [ [...

During 2014, Bill Corp. started a construction job with a total contract price of $20,000,000. The job was completed on December 15, 2015. Additional data are as follows: 2014 2015 Actual costs...

During 2014, Bill Corp. started a construction job with a total contract price of $30,000,000. The job was completed on December 15, 2015. Additional data are as follows: 2014 2015 Actual costs...

Q: Implement the Huffman coding algorithm in Java by considering the following: A. Your input to the program is a text file. B. Your output is a text file which should include: compressed data...

What is the difference between whole brain death and persistent vegetative state?

2 2 2 . Kelsey is 7 3 . She has watched a friend struggle with managing her own investments.What kind of investment would be appropriate for Kelsey to continue to provide income, withoutany concerns...

The logistics manager at a regional distribution center for a major retail department store chain finished analyzing the center's inventory records for a brand of food blenders sold by the chain. The...

Patients are spoken to rudely by overworked technicians or offi ce assistants.

Patients are kept waiting two hours for appointments.

Patients do not have their insurance identifi cation cards with them.