Question
In 2011, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC uses the percentage-of-completion method to account for such projects
In 2011, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC
uses the percentage-of-completion method to account for such projects and provides you with the following
information (dollars in millions):
What are CCC's estimated remaining construction costs on the project at the end of 2011?
Accounts receivable (from construction progress billings) $37.5
Actual construction costs incurred in 2011 $135
Cash collected on project during 2011 $105
Construction in progress, 12/31/11 $207
Estimated percentage of completion during 2011 60%
A. $0
B. $225 million
C. $90 million
D. $135 million
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