1. Which of the following is used in calculating the income recognized in the fourth and final year of a contract accounted for by the percentage-of-completion method?

2. When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee upon signing an operating lease?
(a) When received
(b) At the inception of the lease
(c) At the expiration of the lease
(d) Over the life of thelease

Transcribed Image Text:

Actual Total Cost Income Previously Recognized No No No No