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At the beginning of 2020, Broadway Road Construction entered into a contract to build a road for the government. Construction will take four years. The
- At the beginning of 2020, Broadway Road Construction entered into a contract to build a road for the government. Construction will take four years. The following information as of December 31, 2020 is available for the contract:
Total revenue according to the contract $10,000,000
Total expected cost 8,000,000
Cost incurred during 2020 1,200,000
Under the completed contract method, how much revenue will be reported by Broadway in 2020?
- None
- $300,000
- $1,500,000
2. Which of the following is the most appropriate classification of profit on sale of discontinued operations by a manufacturing firm?
- Gain reported as a part of continuing operations
- Revenue considered a part of operating activities
- Gain reported after continuing operations
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