Total contract price $100,000

Question

Actual costs during 2006 20,000
Estimated remaining costs 40,000
Billed to customer during 2006 30,000
Received from customer during 2006 10,000

16. Under the completed contract method, how much should Hickam recognize as gross profit for 2006?
a. $-0-
b. $4,000
c. $10,000
d. $12,000

17. Under the percentage of completion method, how much should Hickam recognize as gross profit for 2006?
a. $-0-
b. $13,333
c. $26,667
d. $33,333