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Determining the income in the second year of a 4-year long-term project under the percentage-of-completion method includes the ratio of:

A. total costs incurred through the second year of the project to total estimated costs.

B. total costs incurred through the second year of the project to total billings to date.

C. costs incurred in year 2 to total estimated costs.

D. costs incurred in year 2 to total billings to date.

Accounting Basics, Accounting

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