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The following data relate to a construction job started by Worthington Co. during 2009: Total contract price................................................................ P300,000 Actual costs incurred during 2002.........................................     60,000 Estimated remaining costs....................................................   120,000 Billed to customer during 2002..............................................     90,000 Received from customer during 2003...................................     30,000  Under the completed-contract method, how much should Worthington recognize as gross profit for 2009? a. 0 b. 40,000 c. 80,000 d. 100,000

The following data relate to a construction job started by Worthington Co. during 2009: Total contract price................................................................ P300,000 Actual costs incurred during 2002.........................................     60,000 Estimated remaining costs....................................................   120,000 Billed to customer during 2002..............................................     90,000 Received from customer during 2003...................................     30,000  Under the completed-contract method, how much should Worthington recognize as gross profit for 2009? a. 0 b. 40,000 c. 80,000 d. 100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data relate to a construction job started by Worthington Co. during 2009:

Total contract price................................................................ P300,000
Actual costs incurred during 2002.........................................     60,000
Estimated remaining costs....................................................   120,000
Billed to customer during 2002..............................................     90,000
Received from customer during 2003...................................     30,000 

Under the completed-contract method, how much should Worthington recognize as gross profit for 2009?
a. 0
b. 40,000
c. 80,000
d. 100,000

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