Exhibit 17-1
?The following information relates to a project of the Cumberland Construction Company:
?
2016
2017
2018
Actual total costs incurred to date
$136,000
$616,000
$882,000
Estimated costs to complete
714,000
264,000
--
?
The contract price was $1,200,000. Cumberland uses the cost-to-cost method of revenue recognition.
Refer to Exhibit 17-1. Assume revenue in the amount of $200,000 was recognized in 2016. What amount of revenue would be recognized in 2017?
A. $840,000
B. $640,000
C. $616,000
D. $416,000
Answer: B
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