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Brown construction company uses the percentage of completion method for long term construction contracts. A specific job was begun in 2011 and completed in 2013. the contract price was $1,400,000 and cost information as of each year end is given belowEnd of year estimated cost to complete 2011 $400,000 2012 $200,000 2013 $02012 $400,000 2013 $120,000Assuming Brown correctly recorded gross profit in 2011, how much gross profit should the company record in 2012?a- $0b- $20,000c- $300,000d- $320,000Please explain why each answer is wrong and why the correct one is right
Brown construction company uses the percentage of completion method for long term constructioncontracts. A specific job was begun in 2011 and completed in 2013. the contract price was $1,400,000…
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