7. A company started business on January 10, 20X0, and uses the installment method for recognizing revenue from its sales. The following information is available for its fiscal year 20X0. INFORMATION RELATING TO INSTALLMENT SALES FOR FISCAL YEAR 20X0 Installment Accounts Receivable, 12/31/X0 900,000 Deferred Gross Margin, 12/31/X0 (before recording realized gross margin for year) Gross Margin on Sales For Year 450,000 3090 For the year ending December 31, 20X0, what amount of cash has been collected and what is realized gross margin? Cash Collected Realized Gross Margin (a) 600,000 (b) S 600,000 (c) S 450,000 (d) 450,000 135,000 S 180,000 S 135,000 S 180,000 8. A company accounts for a long term construction contract usi ng t percentage of completion method. At the end of the current fiscal year, the following information was available for one of its contracts expected to be completed in the next fiscal year. INFORMATION RELATING TO LONG TERM CONSTRUCTION CONTRACTS FOR CURRENT FISCAL YEAR Progress billings to date Costs incurred to date Revenues recognized to date 500,000 350,000 100,000