Question: In 2016, Omega Construction began work on a contract with a price of $850,000 and estimated costs of $595,000. Data for each year of the

In 2016, Omega Construction began work on a contract with a price of $850,000 and estimated costs of $595,000. Data for each year of the contract are as follows:

2016 2017 2018

Costs incurred during the year $238,000$319,600$105,000

Estimated costs to complete357,000139,400-0-

Partial billings 260,000210,000380,000

Collections 240,000200,000410,000

20) Assuming the performance obligation is satisfied over time, what would be the gross profit in

2016?

A) $102,000

B) $260,000

C) $255,000

D) $425,000

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