AAA Corp. has a contract to construct a sales price $5,000,000 cruise ship at an estimated cost of $4,000,000. The company will begin construction in 2011 and expects to complete in 2015. Lark Corp. has never constructed a cruise ship before, so the company believes there are inherent risks in the construction. Under IFRS, Lark Corp. should use: a. completed-contract method. b. percentageofcompletion method. c. costrecovery (zeroprofit) method. Use the same information in the above question. During 2011, the company has the following activity: 2011 ($) Costs to date 980,000 Estimated costs to complete 3,020,000 Progress billings during the year 1,000,000 Cash collected during the year 648,000 For the year ended December 31, 2011, how much revenue should Lark Corp. recognize on its income statement? a. $980,000. b. $2,040,000. c. $1,000,000. d. $0.