Which is a true statement of how a company using the percentage of completion method should account for a contract with an expected overall loss? The loss should be recognized immediately, as soon as the company realizes it will have a loss. The company should recognize the loss ratably, over the life of the contract, based on work done. The company should recognize the loss ratably, over the life of the contract, based on the amount of time that has passed. No loss should be recognized until the contract is substantially complete.