A company enters into a contract to provide software development services to a client for $100,000. The
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Question:
A company enters into a contract to provide software development services to a client for $100,000. The contract specifies a milestone payment of $40,000 upon completion of the initial design phase. The revenue recognition for the milestone payment should occur when the company has ---------------.
A) Incurred all costs related to the initial design phase
B) Completed 50% of the overall project
C) Transferred ownership of the software to the client
D) Substantially completed the initial design phase
Which option best completes the sentence?
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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