Question: Horner Construction Co. uses the percentage-of-completion method. In 2018, Horner began work on a contract for $22,000,000; it was completed in 2019. The following cost

Horner Construction Co. uses the percentage-of-completion

method. In 2018, Horner began work on a contract for

$22,000,000; it was completed in 2019. The following cost data

pertain to this contract for the year-ended 2018... Cost incurred

during the year: $7,800,000... Estimated costs to complete:

$5,200,000. The following cost data pertain to this contract for the

year-ended 2019... Cost incurred during the year: $5,600,000...

Estimated costs to complete: n/a. If the completed-contract method

of accounting was used, the amount of gross profit (loss)to be

recognized for years 2018 and 2019 would be

a. 2018: $9,000,000... 2019: $ 0

b. 2018: $8,600,000... 2019: ($400,000)

c. 2018: $ 0... 2019: $8,600,000

d. 2018: $ 0... 2019: $9,000,000

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