Answer:
E. None of the above
Explanation:
cost-to-cost method: based on the expected and incurred cost during the period we will determinate the amount of revenue recognize for the period:
![\frac{incurred}{total \: expected \: cost}](https://tex.z-dn.net/?f=%5Cfrac%7Bincurred%7D%7Btotal%20%5C%3A%20expected%20%5C%3A%20cost%7D)
expected cost: 180,000,000
incurred cost during 2017: 72,000,000
percentage of completion: 72,000,000/180,000,000 = 40%
revenue recognition: 40% of the contract:
240,000,000 x 40% = 96,000,000