Question: The following summary data for Amirkhani Construction Co.'s (ACC) relates to Job 1227, which was completed in 2019, are presented below to answer question 16:

The following summary data for Amirkhani Construction Co.'s (ACC) relates to Job 1227, which was completed in 2019, are presented below to answer question 16:

Bid price $450,000

Original estimated contract cost:

2018 $180,000

2019 195,000

Gross profit $75,000

Actual cost incurred in:

2018 $180,000

2019 $200,000

Assuming ACC recognizes revenue over time according to percentage of completion for this contract, the gross profit recognized in 2019 would be (rounded to the nearest thousand):

a. $70,000.

b. $36,000.

c. $34,000.

d. $75,000.

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