Multiple Choice Question 101 Oriole Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $2050000 each quarter. The total contract price is $18222000 and Oriole estimates total costs of $17100000. Oriole estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. At December 31, 2019, Oriole Construction estimates that it is 70% complete with the building; however, the estimate of total costs to be incurred has risen to $18250000 due to unanticipated price increases. What is the total amount of Construction Expenses that Oriole will recognize for the year ended December 31, 2019? $7645000 O $12775000 $7308400 $6503400 Multiple Choice Question 56 Cullumber Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $960000 2850000 (2760000) $1050000 The estimated litigation expense of $2850000 will be deductible in 2019 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1380000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1380000 current and $1380000 noncurrent. The income tax rate is 30% for all years. The deferred tax asset to be recognized is O $855000 noncurrent. O $1683000 current. O $0. O $855000 current