State Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2005, a single long-term project was begun, which continued through 2006. Information on the project follows:
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|
2005 |
2006 |
|
|
Accounts receivable from construction contract |
$100,000 |
$300,000 |
|
Construction expenses |
105,000 |
192,000 |
|
Construction in progress |
122,000 |
364,000 |
|
Partial billings on contract |
100,000 |
420,000 |
Profit recognized from the long-term construction contract in 2006 should be
- $ 50,000
- $108,000
- $128,000
- $228,000