Business, 23.09.2021 06:40, aahneise02

Daisy Company is a large commercial real estate contractor that reports its income by the percentage of completion method. In 2019, the company entered into a contract to construct a building for $960,000. Daisy estimated that the cost of constructing the building would be $720,000. In 2019, the company incurred $240,000 in costs under the contract. In 2020, the company incurred an additional $450,000 in costs to complete the contract. The company's marginal tax rate in all years was 35%. Which of the following statements is true? a. Camelia is not required to report any income from the contract until 2018 when the contract is completed.
b. Camelia should amend its 2017 tax return to decrease the profit on the contract for that year.
c. Camelia must report $300,000 of income in 2017.
d. Camelia must recognize $75,000 of income in 2017.
e. None of these choices are correct.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:40, heroicblad

Sean has placed a job ad and is now interviewing potential employees. which of the following questions is he legally allowed to ask during the interview? do you have any disabilities that will require special accommodation? how many children do you have? where did you earn your degree and how has it prepared you for this position? is this your maiden name that you have listed on the job application?

Answers: 2

continue

Business, 22.06.2019 01:20, MendesArmy333

All of the industries and businesses in the country of marksenia are privately owned and sell products at different prices that are not controlled by the government or any other organizational body. consumers in marksenia are free to buy as much of the products as they like from the businesses they want. the country of marksenia has a

Answers: 1

continue

Business, 22.06.2019 12:20, laskew37221

Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. jaguar, for instance, launched its x-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. by marketing to people who desire a luxurious lifestyle, jaguar is using:

Answers: 3

continue

Business, 22.06.2019 15:20, byler47

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.

Answers: 1

continue

Do you know the correct answer?

Daisy Company is a large commercial real estate contractor that reports its income by the percentage...