Current Attempt in Progress At the end of the first year of a $9022000 contract, Carla...

Transcribed Image Text:

Current Attempt in Progress At the end of the first year of a $9022000 contract, Carla Vista Corporation provides the following information: Costs to date: Estimated costs to complete $3042000 7022000 Progress billings during the year 1804000 Cash collected during the year 1549000 In the first year, Carla Vista should recognize gross profit (loss) of O $0 under either the percentage-of-completion method or the completed-contract method. O $(1042000) under either the percentage-of-completion method or the completed-contract method. O $(312600) under either the percentage-of-completion method or the completed-contract method. O $(312600) under the percentage-of-completion method and $0 under the cost-recovery method. Current Attempt in Progress At the end of the first year of a $9022000 contract, Carla Vista Corporation provides the following information: Costs to date: Estimated costs to complete $3042000 7022000 Progress billings during the year 1804000 Cash collected during the year 1549000 In the first year, Carla Vista should recognize gross profit (loss) of O $0 under either the percentage-of-completion method or the completed-contract method. O $(1042000) under either the percentage-of-completion method or the completed-contract method. O $(312600) under either the percentage-of-completion method or the completed-contract method. O $(312600) under the percentage-of-completion method and $0 under the cost-recovery method.