Gorman Construction Co. began operations in 2013. Construction activity for 2013

Question

Gorman Construction Co. began operations in 2013. Construction activity for 2013 is shown below. Gorman uses the completed-contract method.

Which of the following should be shown on the income statement for 2013 related to Contract 1?

Gross profit, $1,000,000

Gross profit, $1,050,000

Gross profit, $600,000

Gross profit, $450,000

Billings Collections Contract Costs Estimated Contract Through Through Incurred Through Additional Costs Contract Price 12/31/13 12/31/13 12/31/13 to Complete 1 $3,200,000 $3,150,000 $2,600,000 $2,150,000 %u2014 2 3,600,000 1,500,000 1,000,000 820,000 $1,880,000 3 3,300,000 1,900,000 1,800,000 2,250,000 1,200,000

Explanation / Answer

$3,200,000 %u2013 $2,150,000 = $1,050,000.---------correct answer

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.