Warren Construction Company has consistently recognized revenue from its long-term contracts as the performance obligations were met over time. In 2019, Warren started work on a $6,000,000 construction contract, which was completed in 2018. The accounting records disclosed the following data:

How much gross profit should Warren have recognized in 2020?
a. $200,000
b. $220,000
c. $300,000
d. $400,000

Transcribed Image Text:

2019 2020 Progress billings Costs incurred Collections Estimated cost to complete $2,200,000 $3,800,000 1,800,000 3,600,000 1,400,000 4,600,000 3,600,000