ABC Construction builds commercial properties. Financial transactions for 2023 include:

Transactions (in $ millions)	Amount
Cash Receipts	100.0
Credit Sales	40.0
Cash Payments	80.0
Accounts Receivable	20.0
Construction Costs	60.0
Estimated Defect Liabilities	10.0

Requirements:

• Prepare ABC Construction's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated defect liabilities on financial statements.
• Analyze the treatment of accounts receivable and construction costs under the conservatism principle.