单选题 JME Construction always uses the percentage of completion method of recognizing revenue. During 2004 JME signs a contract in the amount of $10 million with the following data available:
Costs incurred to date
$2200000
Billings to date
$2000000
Cash collected
$1750000
Total cost of project
$8800000
How much gross profit should JME recognize for 2004?
  • A. $ 300000.
  • B. $450000.
  • C. $ 200000.
【正确答案】 A
【答案解析】stage of completion = 25 % (2.2/8.8) revenue to be recognized =0.25×10 million =2.5 million gross profit = 2.5 million-2.2million=300000