Question

Multiple Choice Question 103 Oriole Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1100000 each quarter. The total contract price is $13200000 and Oriole estimates total costs of $17300000. Oriole estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. At December 31, 2019, Oriole Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $17550000 due to unanticipated price increases. Oriole Construction completes the remaining 25% of the building construction on December 31, 2020, as scheduled. At that time the total costs of construction are $18300000. What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Oriole will recognize for the year ended December 31, 2020? Revenue Expenses

Revenue Expenses

A)$3300000 $ 4575000

B)$3300000 $ 5137500

C)$13200000 $18300000

D)$4575000 $ 4575000

Answer 1

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