Business, 15.04.2020 22:13 jessieeverett432

Gleason Construction enters into a long term fixed price contract to build an office building for $28,000,000. In the first year of the contract Gleason incurs $5,000,000 of cost and the engineers determined that the remaining costs to complete are $18,000,000.

How much gross profit or loss should Gleason recognize irn Year 1 assuming the use of the completed -contract method?

A. $178,571 loss

B, SO profit

C. $5,000,000 loss

D. $2,500,000 profit

Answers: 3

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