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Merry Lucnhco Co., Corporation uses the percentage-of-completion method to recognize revenue. In
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$ millions):
How much income did Merry Lucnhco Co., earn from the contract for years 1998, 1999, 2000 respectively?
A. 0.4700 0.9400 0.9900
B. 0.2350 0.4700 0.4950
C. 0.7833 1.5667 1.6500
Answer: C
Explanation:
Cumulative Cost 1998 = (4.7/24.0)*100 19.5833% Cumulative Revenue 1998=
(4.7/24.0)*28.0 = 5.483333 Profit= Current Revenue - Expense = 0.783333
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