Testbank Question 65

In 2017, Pop Construction Corp. began work on a contract for $3,700,000. Other details follow:

2017Costs incurred during the year$1,800,000Estimated costs to complete as of December 311,200,000Billings during the year1,650,000Collections during the year975,000

Pop uses the percentage-of-completion method. For calendar 2017, Pop should report gross profit of

a- $2,220,000.

b- $700,000.

c- $150,000.

d- $420,000.