A construction company uses the percentage-of-completion method for long-term construction contracts. A particular job was begun in 2014 and completed in 2015 . During 2014, it appeared that the project would cost 25 percent more than originally expected. Data at the end of each year are given below: 2013 2014 2015 End-of-year estimated cost remaining $ 200,000 $ 100,000 $ - Annual cost incurred
200,000 200,000 60,000 The contract price was $700,000 . Assuming the company properly recorded income in 2013 . how much income should be recorded in 2014?
a. $10,000
b. $42,000
c. $160,000
d. $192,000
A
Business
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