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ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms of the contract, the client will pay ABC a
ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms of the contract, the client will pay ABC a total of $ 60,000, and can cancel the contract if they choose to do so as long as they pay for the completed work. ABC believes that if the customer cancels the contract, they could sell the rocking horses to another amusement park and still make a profit. The manufacturing contract is expected to last six months. As of December 31, 2019, 80% of the wheelies were finished and stored in the ABC warehouse to be delivered when the order is completed. How much income can ABC recognize in 2019 from this contract?
Select one:
a. $ 0
b. $ 48,000
c. $ 60,000
d. $ 12,000
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