1. All the followings are the ingredients of the same fundamental quality in the conceptual framework for financial reporting except: A. Predictive value. B. Confirmatory value. C. Neutrality. D. Materiality. Choosing or changing to a particular accounting method in order to show a better financial performance in a year is not appropriate due to ingredient. A. Predictive value B. Confirmatory value C. Neutrality D. Materiality 2. Question 3 - 10 (2 marks each, total 16 marks) Use the following to answer Question 3 - 4. South Ocean Construction Corporation contracted to construct a building for $7,500,000. Construction began in 2018 and was completed in 2019. South Ocean uses the percentage-of-completion method as the basis for income recognition. Data relating to the contract are summarized below: Year ended December 31 2018 2019 Costs incurred to date $3,000,000 $5,250,000 Estimated costs to complete $2,000,000 3. For the year ended December 31, 2018, South Ocean should report revenue and gross profit of A. $4,500,000 and $1,500,000. B. $4,500,000 and $3,000,000. C. $3,000,000 and $0. D. $3,000,000 and $1,500,000. 4. For the year ended December 31, 2019, South Ocean should report revenue and gross profit of A. $3,000,000 and $1,000,000. B. $3,000,000 and $750,000. C. $4,500,000 and $2,250,000. D. $7,500,000 and $2,250,000