Problem 12 Chandler Limited started a construction job with a total contract price of $ 1,050,000 during 2020. Chandler uses the completed contract method. The job was completed on December 21, 2021. Additional data is as follows:

2020 2021 Actual costs incurred $ 405,000 $ 457,500 Estimated remaining costs 405,000 Billings to date 360,000 690,000 Collections to date 200,000 480,000

What amount should Chandler recognize as gross profit in 2020?

Problem 12 options:

a)

$ 0

b)

$ 120,000

c)

$ 142,500

d)

$ 187,500