In 2013, Fargo Corporation began construction work under a three year contract. The Contract price is $3,600,000. Fargo uses the percentage of completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2013, follow: Balance Sheet: A/Rec–construction contract billings 150,000 Construction in progress 450,000 Less Contract billings 360,000 Costs and recognized profit in excess of billings 90,000 Income Statement Income(Before tax) on the contract recognized in 2013 90,000 how much cash was collected in 2013 on this contract? a. 150,000 b. 210,000 c. 30,000 d. 360,000
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