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On January 1, 2018, Ledge Road Construction Co, Inc. entered into a contract to build a highway extension for the State of Florida. As of
- On January 1, 2018, Ledge Road Construction Co, Inc. entered into a contract to build a highway extension for the State of Florida. As of December 31, 2018, the following information is available for this contract:
Contract Price $10,000,000
Anticipated Total Costs $8,000,000
Costs incurred during 2018 $1,000,000
- Under the percentage of completion method for accounting for long-term contracts, how much will the company record as revenue in 2018?
- $1,000,000
- $250,000
- $2,000,000
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