ACCT 311-Shiplett Co. had the following first-year amounts

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June 7th, 2024

1. Shiplett Co. had the following first-year amounts for a $8,000,000 construction contract:Actual costs $3,000,000Estimated costs to complete: $7,000,000Progress billings: $1,800,000Cash collected: $1,500,000What amount should Howard recognize as gross profit (loss) using the percentage-of-completion method?a. ($1,000,000)b. ($2,000,000)c. $800,000d. $1,750,000

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