16. Revenue for ongoing sales-based royalty payments should be recognized A) when the amount of sales can be detemined B) on the date payment is received by the franchisor. C) on the date the performance obligation is satisfied D) on the date the contract was signed. Use the following to answer question 17: Eilert Construction Company had a contract starting April 2018, to construct a $42,000,000 building that is expected to be completed in September 2019, at an estimated cost of $38,500,000. At the end of 2018, the costs to date were $17,710,000 and the estimated total costs to complete had not changed. The progress billings during 2018 were $8,400,000 and the cash collected during 2018 was $5,600,000. Eilert uses the percentage-of-completion method. 17. At December 31, 2018, Eilert would report Construction in Process in the amount of A) S19,320,000. B) S17,710,000. C) S16,520,000. D) S 1,610,000. 18. Arizona Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Arizona Communications will design and set-up a call center with the following costs Design of call center Computers, servers, telephone equipment $20,000 S550,000 $170,000 $30,000 Software Installation and testing of equipment Selling commission Annual service contract S100,000 In addition, Arizona Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $180,000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is A) $920,000 B) $820,000 C) $720,000 D) $740,000