Sharpcollectedrentinadvanceof$525,000fromitstenantsduringthecurrentyear.TheadjustedbalanceintheUnearnedRentaccountincreasedfrom$245,000to$378,000duringtheyear.WhatisSharp'srevenuefromrentforthecurrentyear?

Accounting 5110 - Fall 2015 Review Assignment #1 Due September 29, 2015 Section 1 by 8:40 am Section 2 by 3:10 pm Section 3 by 10:15 am PLEASE ANSWER THE QUESTIONS AND COMPLETE THE PROBLEMS ON THE FOLLOWING PAGES. WHEN COMPLETED, YOU WILL SUBMIT YOUR ANSWERS ON CANVAS. THIS IS A REQUIRED ASSIGNMENT. This homework assignment is worth 25 points that will be awarded based on the following: Points QUESTIONS 1 - 7, 9 - 13, 14, 15, 17 1 POINT EACH 15 QUESTIONS 8, 16, 18, 19, 20 2 POINTS EACH 10 TOTAL 25 1 1. (1 point) Sharp collected rent in advance of $525,000 from its tenants during the current year. The adjusted balance in the Unearned Rent account increased from $245,000 to$378,000 during the year. What is Sharp's revenue from rent for the current year? a. $133,000 b. $245,000 c. $658,000 d. $147,000 e. $392,000 f. $525,000 g. $280,000 h. None of the above 2. (1 point) Camden Co. reported accounts receivable at December 31, 2014 and 2015, of $32,600 and $22,300, respectively. They also reported revenue of $428,500 for its year ended December 31, 2015. Using the direct method for reporting cash flows from operating activities, Camden Co. would report cash collected from customers of: a. $406,200. b. $395,900. c. $428,500. d. $418,200. e. $438,800. f. $450,800. g. $461,100. h. None of the above 3. (1 point) Trey Corporation manages a database for prospective employers. They received cash of $24,000 on October 1, 2015 for one year's subscription in advance. On October 1, the company recorded the transaction with a credit to Subscription Revenue. The December 31, 2015 adjusting entry is a. debit Subscription Revenue and credit Unearned Subscriptions, $6,000. b. debit Unearned Subscriptions and credit Subscription Revenue, $6,000. c. debit Cash and credit Unearned Subscriptions, $18,000. d. debit Unearned Subscriptions and credit Subscription Revenue, $18,000 e. debit Unearned Subscriptions and credit Cash, $24,000 f. debit Subscription Revenue and credit Unearned Subscriptions, $18,000. g. debit Cash and credit Subscription Revenue, $24,000 h. None of the above. 2 Use the following to answer the next two questions: Listed below are account balances taken from the records of Carter Co. at December 31, 2014 after all income and expense accounts were closed. Additional information: The notes receivable are to be collected by the end of 2015. The investment account represents stock held in another company. The company does not intend to sell the stock. The Treasury bills mature July 1, 2015. Prepaid expenses related to a 6-month insurance policy. The notes payable are due at various dates beginning in 2017. 4. (1 point) Total current assets for Carter Co. at December 31, 2014 is: a. $188 b. $923 c. $858 d. $1,048 e. $728 f. $918 g. $1,043 h. None of the above 3 5. (1 point) Total stockholders' equity for Carter Co. at December 31, 2014 is: a. $503 b. $483 c. $583 d. $383 e. $363 f. $548 g. $308 h. None of the above 6. (1 point) On August 1st, Hank & Sons received an order for 50 go-carts. A $500 deposit was received from the client on August 5th. Hank delivered the go-carts to the client on August 15th. The remaining balance was paid on August 20th ($1,000) and August 30th ($1,500). Hank & Sons would recognize revenue on a. August 1st b. August 5th c. August 15th d. August 20th e. August 30th f. On August 5th and August 15th g. On August 5th, August 20th, and August 30th. h. None of the above is correct 7. (1 point) Salt Co. had a balance in retained earnings of $35,900 at the end of 2013. During 2014, the company declared $18,000 of dividends and paid $12,500 of previously declared (2013) dividends. If the company had retained earnings of $42,700 after closing the accounting records for 2014, then how much net income did Salt Co. generate in 2014? a. $19,300 b. $6,800 c. $11,200 d. $60,600 e. $37,300 f. $42,700 g. $23,700 h. None of the above. 4 Sanders Inc. provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for your help in preparing part of the company's 2015 statement of cash flows. All sales and expenses are on account. 2015 Income Statement Sales Revenue Depreciation Expense Selling and Administrative expenses Total Expenses Income Before Taxes Income tax expense Net Income $1,300 $2,450 Balance Sheet Assets Cash Accounts Receivable Property, plant & equipment Less: Accumulated Depreciation Total Assets 12/31/15 12/31/14 Liabilities and Stockholder's Equity Accounts Payable Income taxes payable Common Stock Retained Earnings Total Liabilities and Stockholders Equity $9,400 $3,750 $5,650 $1,695 $3,955 $2,750 $3,005 $1,025 $740 $8,700 $7,200 ($2,560) ($1,260) $9,915 $9,685 $1,560 $790 $4,500 $3,065 $9,915 $1,090 $1,120 $4,500 $2,975 $9,685 8. (2 points) Determine the cash flow from operating activities for Sanders Inc. for the year ended December 31, 2015: a. $3,955 b. $4,970 c. $5,365 d. $3,810 e. $5,400 f. $5,255 g. $5,110 h. None of the above 5 9. (1 point) Utah Publishing, Inc. owns a weekly magazine called \"Valley Happenings,\" and sells annual subscriptions for $98. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 25% discount coupon on its other weekly magazine called \"Dining & Dancing,\" which has a list price of $80 for an annual subscription. Utah Publishing estimates that approximately 10% of the discount coupons will be redeemed. What amount of the total selling price should be allocated to the discount coupon? a. $1.96 b. $1.60 c. $2.00 d. $2.45 e. $2.39 f. $7.40 g. $16.61 h. None of the above. 10. (1 point) Mint Electronics sells computers and provides hardware maintenance services. On April 1st, Mint sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Mint Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly? a. $358. b. $700. c. $725. d. $1,200. e. $1,000. f. $870. g. $840. h. None of the above. 6 11. (1 point) During its 2015 fiscal year, Anderson Company reported before-tax income of $475,000. This amount does not include the following two items, both of which are considered to be material in amount: Foreign currency translation gains Loss from discontinued operations $185,000 (68,000) Anderson Company prepares its financial statement applying U.S. GAAP and the company's income tax rate is 35%. In its 2015 income statement, Anderson would report income from continuing operations (after tax) of: a. $166,250 b. $384,800 c. $551,050 d. $308,750 e. $429,000 f. $430,800 g. $475,000 h. None of the above 12. (1 point) Shur-fine Manufacturing agrees to manufacture customized shelves for AllFoods Grocery. Under the terms of the contract (which was signed on August 30, 2015), AllFoods will pay Shur-fine a total of $40,000, and AllFoods can cancel the contract if it so chooses but must pay Shur-fine for work completed. Shur-fine believes that, if AllFoods cancelled the contract, Shur-fine could sell the shelves to another grocery store and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2015, the job is 70% complete. How much revenue should Shur-fine recognize in 2015 for this contract? a. $0 b. $12,600 c. $21,000 d. $35,000 e. $28,000 f. $29,400 g. $40,000 h. None of the above answers are correct 7 On October 1, 2015 Peyton Co. agreed to sell the assets of its Colt Division to Bronco Inc. for $70 million. The sale was completed on December 31, 2015. The following additional facts pertain to the transaction: The Colt Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Colt's assets totaled $73 million on the date of the sale. Colt's operating income was a pre-tax loss of $3.5 million in 2015. Peyton's income tax rate is 30%. 13. (1 point) In the 2015 income statement for Peyton Co., it would report income (loss) from discontinued operations of: a. ($2.45) million b. ($3.50) million. c. ($6.50) million. d. ($2.10) million e. $0.35 million. f. ($4.55) million. g. $0.50 million. h. None of the above 8 Please use the following information to answer the next three questions. The trial balance of Harris Inc. included the following accounts as of December 31, 2015: Harris Inc. Trial Balance As of December 31, 2015 Sales Revenue Interest expense Gain on sale of investments Unrealized loss on investments Cost of Goods Sold Loss from discontinued operations, net of gain on sale Foreign currency translation gain Selling expenses Restructuring costs Interest Revenue General and administrative expenses Debits Credits $912,300 $21,400 $22,000 $48,000 $605,700 $37,000 $45,600 $87,300 $38,500 $19,800 $98,700 Harris had 28,000 shares of stock outstanding at the beginning of the year and issued an additional 5,100 shares on September 1. Income tax expense has not yet been accrued. The effective tax rate is 35%. Prepare a multiple-step comprehensive income statement with earnings per share disclosure and answer the next three questions: 14. (1 points) What is Harris' operating income? a. $42,575 b. $63,100 c. $66,625 d. $60,700 e. $82,100 f. $102,500 g. $79,700 h. None of the above 15. (1 point) What is Harris' comprehensive income? a. $42,575 b. $41,015 c. $63,100 d. $40,175 e. $66,625 f. $75,225 g. $82,100 h. None of the above 9 16. (2 points) What is Harris' basic earnings per share for net income (rounded to the nearest penny)? a. $1.29 b. $1.43 c. $1.38 d. $2.48 e. $2.24 f. $2.76 g. $3.45 h. None of the above Use the following information to answer the next three questions. Rooster Services provides room-cleaning arrangements for hotels. On April 1, Swanky Hotels & Resorts signed an agreement to outsource its room cleaning functions to Rooster. The contract specifies the service fee to be $15,000 per month, and all payments are to be made shortly after the end of each quarter. It also specifies that Rooster will receive an additional quarterly bonus of $3,000, if during that quarter, Swanky receives no more than five complaints from customers about room cleanliness. On April 1, based on historical experience, Rooster estimated that there is a 75% chance that it will earn the quarterly bonus. On May 5, Rooster learned that, during March, there were two complaints from customers related to room cleanliness. Based on this new information, Rooster revised its estimate downward to 40% that it would earn the quarterly bonus. On June 30, Swanky notified Rooster that, for the quarter ended, there were four complaints associated with room cleanliness, so Rooster would receive the bonus. Two days later, Rooster received all payments due for all services rendered in the second quarter, including the bonus Rooster estimates any variable consideration on the expected value of the consideration it expects to receive. 17. (1 point) Prepare the required journal entry for Rooster Services on April 30th. The entry includes: a. A debit to accounts receivable of $15,750 b. A debit to bonus receivable of $3,000 c. A credit to service revenue of $18,000 d. A credit to bonus receivable of $1,500 e. A debit to bonus receivable of $2,250 f. A debit to bonus receivable of $750 g. A credit to deferred revenue of $31,500 h. None of the above 10 18. (2 point) Prepare the required journal entry for Rooster Services on May 30th. The entry includes: a. A debit to accounts receivable of $15,400 b. A debit to bonus receivable of $50 c. A debit to bonus receivable of $750 d. A credit to service revenue of $15,400 e. A credit to bonus receivable of $50 f. A debit to bonus receivable of $400 g. A credit to deferred revenue of $15,400 h. None of the above 19. (2 points) Prepare the required journal entry for Rooster Services on June 30th. The entry includes: a. A debit to bonus receivable of $2,200 b. A debit to accounts receivable of $15,800 c. A debit to bonus receivable of $400 d. A credit to service revenue of $18,000 e. A credit to bonus receivable of $800 f. A debit to bonus receivable of $750 g. A credit to deferred revenue of $46,900 h. None of the above On January 5, 2013, Miller Company agreed to construct a building at a contract price of $6,500,000. Miller estimated total construction costs would be $4,200,000 and the project would be finished in 2015. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2013 $1,200,000 2,800,000 2,900,000 2,600,000 2014 $2,200,000 1,800,000 4,200,000 3,750,000 2015 $4,700,000 -0- 5,500,000 5,000,000 20. (2 points) Under long-term contract accounting, what are the gross profits Miller Company recognized in 2014 and 2015, respectively? (Round to the nearest dollar) a. $2,500,000; $425,000 b. $750,000; $625,000 c. $1,375,000; $1,800,000 d. $766,667; $766,667 e. $247,500 $500,000 f. $600,000; $600,000 g. $625,000; $425,000 h. None of the above 11 Accounting 5110 - Fall 2015 Review Assignment #1 Due September 29, 2015 Section 1 by 8:40 am Section 2 by 3:10 pm Section 3 by 10:15 am PLEASE ANSWER THE QUESTIONS AND COMPLETE THE PROBLEMS ON THE FOLLOWING PAGES. WHEN COMPLETED, YOU WILL SUBMIT YOUR ANSWERS ON CANVAS. THIS IS A REQUIRED ASSIGNMENT. This homework assignment is worth 25 points that will be awarded based on the following: Points QUESTIONS 1 - 7, 9 - 13, 14, 15, 17 1 POINT EACH 15 QUESTIONS 8, 16, 18, 19, 20 2 POINTS EACH 10 TOTAL 25 1 1. (1 point) Sharp collected rent in advance of $525,000 from its tenants during the current year. The adjusted balance in the Unearned Rent account increased from $245,000 to$378,000 during the year. What is Sharp's revenue from rent for the current year? a. $133,000 b. $245,000 c. $658,000 d. $147,000 e. $392,000 f. $525,000 g. $280,000 h. None of the above 2. (1 point) Camden Co. reported accounts receivable at December 31, 2014 and 2015, of $32,600 and $22,300, respectively. They also reported revenue of $428,500 for its year ended December 31, 2015. Using the direct method for reporting cash flows from operating activities, Camden Co. would report cash collected from customers of: a. $406,200. b. $395,900. c. $428,500. d. $418,200. e. $438,800. f. $450,800. g. $461,100. h. None of the above 3. (1 point) Trey Corporation manages a database for prospective employers. They received cash of $24,000 on October 1, 2015 for one year's subscription in advance. On October 1, the company recorded the transaction with a credit to Subscription Revenue. The December 31, 2015 adjusting entry is a. debit Subscription Revenue and credit Unearned Subscriptions, $6,000. b. debit Unearned Subscriptions and credit Subscription Revenue, $6,000. c. debit Cash and credit Unearned Subscriptions, $18,000. d. debit Unearned Subscriptions and credit Subscription Revenue, $18,000 e. debit Unearned Subscriptions and credit Cash, $24,000 f. debit Subscription Revenue and credit Unearned Subscriptions, $18,000. g. debit Cash and credit Subscription Revenue, $24,000 h. None of the above. 2 Use the following to answer the next two questions: Listed below are account balances taken from the records of Carter Co. at December 31, 2014 after all income and expense accounts were closed. Additional information: The notes receivable are to be collected by the end of 2015. The investment account represents stock held in another company. The company does not intend to sell the stock. The Treasury bills mature July 1, 2015. Prepaid expenses related to a 6-month insurance policy. The notes payable are due at various dates beginning in 2017. 4. (1 point) Total current assets for Carter Co. at December 31, 2014 is: a. $188 b. $923 c. $858 d. $1,048 e. $728 f. $918 g. $1,043 h. None of the above 3 5. (1 point) Total stockholders' equity for Carter Co. at December 31, 2014 is: a. $503 b. $483 c. $583 d. $383 e. $363 f. $548 g. $308 h. None of the above 6. (1 point) On August 1st, Hank & Sons received an order for 50 go-carts. A $500 deposit was received from the client on August 5th. Hank delivered the go-carts to the client on August 15th. The remaining balance was paid on August 20th ($1,000) and August 30th ($1,500). Hank & Sons would recognize revenue on a. August 1st b. August 5th c. August 15th d. August 20th e. August 30th f. On August 5th and August 15th g. On August 5th, August 20th, and August 30th. h. None of the above is correct 7. (1 point) Salt Co. had a balance in retained earnings of $35,900 at the end of 2013. During 2014, the company declared $18,000 of dividends and paid $12,500 of previously declared (2013) dividends. If the company had retained earnings of $42,700 after closing the accounting records for 2014, then how much net income did Salt Co. generate in 2014? a. $19,300 b. $6,800 c. $11,200 d. $60,600 e. $37,300 f. $42,700 g. $23,700 h. None of the above. 4 Sanders Inc. provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for your help in preparing part of the company's 2015 statement of cash flows. All sales and expenses are on account. 2015 Income Statement Sales Revenue Depreciation Expense Selling and Administrative expenses Total Expenses Income Before Taxes Income tax expense Net Income $1,300 $2,450 Balance Sheet Assets Cash Accounts Receivable Property, plant & equipment Less: Accumulated Depreciation Total Assets 12/31/15 12/31/14 Liabilities and Stockholder's Equity Accounts Payable Income taxes payable Common Stock Retained Earnings Total Liabilities and Stockholders Equity $9,400 $3,750 $5,650 $1,695 $3,955 $2,750 $3,005 $1,025 $740 $8,700 $7,200 ($2,560) ($1,260) $9,915 $9,685 $1,560 $790 $4,500 $3,065 $9,915 $1,090 $1,120 $4,500 $2,975 $9,685 8. (2 points) Determine the cash flow from operating activities for Sanders Inc. for the year ended December 31, 2015: a. $3,955 b. $4,970 c. $5,365 d. $3,810 e. $5,400 f. $5,255 g. $5,110 h. None of the above 5 9. (1 point) Utah Publishing, Inc. owns a weekly magazine called \"Valley Happenings,\" and sells annual subscriptions for $98. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 25% discount coupon on its other weekly magazine called \"Dining & Dancing,\" which has a list price of $80 for an annual subscription. Utah Publishing estimates that approximately 10% of the discount coupons will be redeemed. What amount of the total selling price should be allocated to the discount coupon? a. $1.96 b. $1.60 c. $2.00 d. $2.45 e. $2.39 f. $7.40 g. $16.61 h. None of the above. 10. (1 point) Mint Electronics sells computers and provides hardware maintenance services. On April 1st, Mint sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Mint Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly? a. $358. b. $700. c. $725. d. $1,200. e. $1,000. f. $870. g. $840. h. None of the above. 6 11. (1 point) During its 2015 fiscal year, Anderson Company reported before-tax income of $475,000. This amount does not include the following two items, both of which are considered to be material in amount: Foreign currency translation gains Loss from discontinued operations $185,000 (68,000) Anderson Company prepares its financial statement applying U.S. GAAP and the company's income tax rate is 35%. In its 2015 income statement, Anderson would report income from continuing operations (after tax) of: a. $166,250 b. $384,800 c. $551,050 d. $308,750 e. $429,000 f. $430,800 g. $475,000 h. None of the above 12. (1 point) Shur-fine Manufacturing agrees to manufacture customized shelves for AllFoods Grocery. Under the terms of the contract (which was signed on August 30, 2015), AllFoods will pay Shur-fine a total of $40,000, and AllFoods can cancel the contract if it so chooses but must pay Shur-fine for work completed. Shur-fine believes that, if AllFoods cancelled the contract, Shur-fine could sell the shelves to another grocery store and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2015, the job is 70% complete. How much revenue should Shur-fine recognize in 2015 for this contract? a. $0 b. $12,600 c. $21,000 d. $35,000 e. $28,000 f. $29,400 g. $40,000 h. None of the above answers are correct 7 On October 1, 2015 Peyton Co. agreed to sell the assets of its Colt Division to Bronco Inc. for $70 million. The sale was completed on December 31, 2015. The following additional facts pertain to the transaction: The Colt Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Colt's assets totaled $73 million on the date of the sale. Colt's operating income was a pre-tax loss of $3.5 million in 2015. Peyton's income tax rate is 30%. 13. (1 point) In the 2015 income statement for Peyton Co., it would report income (loss) from discontinued operations of: a. ($2.45) million b. ($3.50) million. c. ($6.50) million. d. ($2.10) million e. $0.35 million. f. ($4.55) million. g. $0.50 million. h. None of the above 8 Please use the following information to answer the next three questions. The trial balance of Harris Inc. included the following accounts as of December 31, 2015: Harris Inc. Trial Balance As of December 31, 2015 Sales Revenue Interest expense Gain on sale of investments Unrealized loss on investments Cost of Goods Sold Loss from discontinued operations, net of gain on sale Foreign currency translation gain Selling expenses Restructuring costs Interest Revenue General and administrative expenses Debits Credits $912,300 $21,400 $22,000 $48,000 $605,700 $37,000 $45,600 $87,300 $38,500 $19,800 $98,700 Harris had 28,000 shares of stock outstanding at the beginning of the year and issued an additional 5,100 shares on September 1. Income tax expense has not yet been accrued. The effective tax rate is 35%. Prepare a multiple-step comprehensive income statement with earnings per share disclosure and answer the next three questions: 14. (1 points) What is Harris' operating income? a. $42,575 b. $63,100 c. $66,625 d. $60,700 e. $82,100 f. $102,500 g. $79,700 h. None of the above 15. (1 point) What is Harris' comprehensive income? a. $42,575 b. $41,015 c. $63,100 d. $40,175 e. $66,625 f. $75,225 g. $82,100 h. None of the above 9 16. (2 points) What is Harris' basic earnings per share for net income (rounded to the nearest penny)? a. $1.29 b. $1.43 c. $1.38 d. $2.48 e. $2.24 f. $2.76 g. $3.45 h. None of the above Use the following information to answer the next three questions. Rooster Services provides room-cleaning arrangements for hotels. On April 1, Swanky Hotels & Resorts signed an agreement to outsource its room cleaning functions to Rooster. The contract specifies the service fee to be $15,000 per month, and all payments are to be made shortly after the end of each quarter. It also specifies that Rooster will receive an additional quarterly bonus of $3,000, if during that quarter, Swanky receives no more than five complaints from customers about room cleanliness. On April 1, based on historical experience, Rooster estimated that there is a 75% chance that it will earn the quarterly bonus. On May 5, Rooster learned that, during March, there were two complaints from customers related to room cleanliness. Based on this new information, Rooster revised its estimate downward to 40% that it would earn the quarterly bonus. On June 30, Swanky notified Rooster that, for the quarter ended, there were four complaints associated with room cleanliness, so Rooster would receive the bonus. Two days later, Rooster received all payments due for all services rendered in the second quarter, including the bonus Rooster estimates any variable consideration on the expected value of the consideration it expects to receive. 17. (1 point) Prepare the required journal entry for Rooster Services on April 30th. The entry includes: a. A debit to accounts receivable of $15,750 b. A debit to bonus receivable of $3,000 c. A credit to service revenue of $18,000 d. A credit to bonus receivable of $1,500 e. A debit to bonus receivable of $2,250 f. A debit to bonus receivable of $750 g. A credit to deferred revenue of $31,500 h. None of the above 10 18. (2 point) Prepare the required journal entry for Rooster Services on May 30th. The entry includes: a. A debit to accounts receivable of $15,400 b. A debit to bonus receivable of $50 c. A debit to bonus receivable of $750 d. A credit to service revenue of $15,400 e. A credit to bonus receivable of $50 f. A debit to bonus receivable of $400 g. A credit to deferred revenue of $15,400 h. None of the above 19. (2 points) Prepare the required journal entry for Rooster Services on June 30th. The entry includes: a. A debit to bonus receivable of $2,200 b. A debit to accounts receivable of $15,800 c. A debit to bonus receivable of $400 d. A credit to service revenue of $18,000 e. A credit to bonus receivable of $800 f. A debit to bonus receivable of $750 g. A credit to deferred revenue of $46,900 h. None of the above On January 5, 2013, Miller Company agreed to construct a building at a contract price of $6,500,000. Miller estimated total construction costs would be $4,200,000 and the project would be finished in 2015. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2013 $1,200,000 2,800,000 2,900,000 2,600,000 2014 $2,200,000 1,800,000 4,200,000 3,750,000 2015 $4,700,000 -0- 5,500,000 5,000,000 20. (2 points) Under long-term contract accounting, what are the gross profits Miller Company recognized in 2014 and 2015, respectively? (Round to the nearest dollar) a. $2,500,000; $425,000 b. $750,000; $625,000 c. $1,375,000; $1,800,000 d. $766,667; $766,667 e. $247,500 $500,000 f. $600,000; $600,000 g. $625,000; $425,000 h. None of the above 11