An entity is calculating the income recognized in the third year of a 5-year construction contract. It uses the input method based on costs incurred to measure the progress toward completion. The ratio used in calculating income is Costs incurred in Year 3 to total estimated costs. Total costs incurred to date to total estimated costs. Total costs incurred to date to total billings. What is the Costs incurred in Year 3 to total billings.

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The ratio used in calculating income based on the input method with costs incurred ... View the full answer