In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2. The builder's cost is estimated to be $1,800,000. The actual costs year 1 are $900,000 and year 2's actual costs are $1,300,000. Under the completed contract method the gross profit for year 2 is

A) $0.
B) $300,000.
C) $350,000.
D) $700,000.


B) $300,000.

$2,500,000 - ($900,000 + $1,300,000) = $300,000

Business

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What will be an ideal response?

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a. people. b. costs. c. activities. d. time.

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Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can not be changed

Indicate whether the statement is true or false

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