Cooper Construction Company had a contract starting April 2018, to construct a 24,000,000

building that is expected to be completed in September 2020, at an estimated cost of

22,000,000. At the end of 2018, the costs to date were 10,120,000 and the estimated total

costs to complete had not changed. The progress billings during 2018 were 4,800,000 and

the cash collected during 2018 was 3,200,000. Cooper uses the percentage-of-completion

method.

*5. For the year ended December 31, 2018, Cooper would recognize gross profit on the

building of:

a. 843,333

b. 920,000

c. 1`,080,000

d. 0

*6. At December 31, 2018 Cooper would report Construction in Process in the amount

of:

a. 920,000

b. 10,120,000

c. 11,040,000

d. 9,440,000