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Question - On January 1, 20x7, Porter Inc. entered into a 3-year construction contract for $3075916. The actual and expected costs to complete the project as at each year-end are outlined in the table below.
Dec 31, 20x7 Dec 31, 20x8 Dec 31, 20x9
Costs incurred during the year $721920 $650,000 $600,000
Expected costs to complete $1287099 $550,000
Required - How much profit should Porter Inc. recognize in relation to this contract for the fiscal year 20x7?
a. $2353996
b. $1105298
c. $1066897
d. $383378
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