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ABC Corp began work in fiscal year 20X0 on a contract priced at $1,361,155. Actual costs incurred in fiscal years 20X0 and 20x1 were $581,015
ABC Corp began work in fiscal year 20X0 on a contract priced at $1,361,155. Actual costs incurred in fiscal years 20X0 and 20x1 were $581,015 and $364,783 respectively. At the end of 20x0, the estimated costs to complete the contract were $392,009 in 20X1. The billings made in 20X0 were 5457,341, while the collections in 20X0 were $326,678. If the company uses the percentage-of-completion method for long-term contracts, what should be the gross profit recognized for this contract in 20X1? O a $188,185 O b. $197,365 OC $192,775 Od $183,595 Oe $179,005
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