5. In 2015, Solid Construction Co. (SCC) began work on a two-year fixed price contract project. SCC uses the percentage-of-completion method to account for such projects and provides you with the following information (dollars in millions): $37.5 $135 $105 Accounts receivable (from construction progress billings) Actual construction costs incurred in 2015 Cash collected on project during 2015 Construction in progress, 12/31/15 Estimated percentage of completion during 2015 $207 60% How much cash remains to be collected by SCC on the project? O A. $240 million O B. $70 million O C. $202.5 million O D. The answer can't be determined from the given information. 6. Montana Co. began a construction project in 2015 that will provide it $150 million when it is completed in 2017. During 2015, Montana incurred $36 million of costs and estimates an additional $84 million of costs to complete the project. In 2016, Montana incurred costs of $63.75 million and estimated an additional $42.75 million in costs to complete the project. Using the percentage-of-completion method, Montana recognized a on the project in 2016. O A. $1 million loss O B. $7.5 million gross profit O c. $5.25 million gross profit O D. $3.75 million loss 7. Yo Yo Phones sells smartphones with an unconditional right to return the phone if the customer isn't satisfied. Yo Yo has a long history selling these phones under this returns policy and can provide precise estimates of the amount of returns associated with each sale. Yo Yo most likely should recognize revenue O A. when Yo Yo Phones receives cash from the customer. O B. when Yo Yo Phones delivers a smartphone to a customer, ignoring potential returns. O C. when Yo Yo Phones delivers a smartphone to a customer, in an amount that is reduced by the expected returns. O D. when a customer returns a smartphone