Question 6
West Construction has a four-year contract with St. Louis County to add additional lanes to Highway 270.
Consider the following contract analysis:
| Year | Cash collections | Cost Incurred |
| :----- | :---------------- | :------------ |
| Year 1 | $ 80,000 | $ 105,000 |
| Year 2 | $ 90,000 | $ 84,000 |
| Year 3 | $ 100,000 | $ 63,000 |
| Year 4 | $ 130,000 | $ 98,000 |
| Total | $ 400,000 | $ 350,000 |
Compute West Construction's Year 2 Net Income.
â—‹ $6,000
â—‹ $9,000
â—‹ $50,000
â—‹ $12,000
â—‹ None of the other answers are correct