BUILDING COMPANY provided the following information about one of it's construction contracts (CONTRACT XY):

Cost incurred to date: $500,000

Cost to complete: $2,500,000

Contract price = Total Cost Plus $1,000,000

Amount paid to date by client: $100,000

How much revenue should BUILDING COMPANY recognize on CONTRACT XY?

Select one:

a. $500,000

b. $250,000

c. $800,000

d. $1,000,000

e. None of these answers

How much PROFIT/LOSS should BUILDING COMPANY recognize on CONTRACT XY?

Select one:

a. None of these answers

b. PROFIT OF $800,000

c. PROFIT OF $1,000,000

d. PROFIT OF $500,000

e. PROFIT OF $250,000