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Gleason Construction enters into a long - term fixed price contract to build an office building for $23,000,000. In the first year of the contract
Gleason Construction enters into a long - term fixed price contract to build an office building for $23,000,000. In the first year of the contract Gleason incurs $5,000,000 of cost and the engineers determined that the remaining costs to complete are $15,000,000. How much gross profit or loss should Gleason recognize in Year 1 assuming the use of the completed - contract method? A. $1,500,000 profit B. $0 profit C. $3,000,000 loss D. $217,391 loss
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