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A company entered into a contract with a customer on 1 November 2004. The contract was scheduled to run for two years and has a

A company entered into a contract with a customer on 1 November 2004. The contract was scheduled to run for two years and has a sales value of $40 million. The company will satisfy the performance obligations over time. At 31st October 2005, the following details were obtained from the company records: Costs incurred to date 16$ Estimated costs to completion 18$ Progress at 31 October 2005 45% Applying IFRS 15, how much revenue and cost should the company recognize in its profit and loss statement at 31 October 2005? Select one:

a. Revenue= 18 mill, Cost=16 mill

b. Revenue=18 mill, Cost=15.3 mill

c. I want to leave this answer blank

d. Revenue=40 mill, Cost=15.3 mill

e. Revenue=40 mill, Cost=34 mill

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