Question: The calculation of the income recognized in the third year of a five-year construction contract accounted for using the percentage-of-completion method includes the ratio of
The calculation of the income recognized in the third year of a five-year construction contract accounted for using the percentage-of-completion method includes the ratio of
a. Total costs incurred to date to total estimated costs.
b. Total costs incurred to date to total billings to date.
c. Cost incurred in year three to total estimated costs.
d. Costs incurred in year three to total billings to date.
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