After reviewing the statement, John and Karen got into a discussion concerning the level of revenue the company had earned during the year. John argued that all of the revenue from the sale of the renovated home, along with 70% of the expected revenue from the new construction contract, had been earned. Karen, on the other hand, maintained that the revenue on the renovation project should be recognized only to the extent of the cash actually collected and that no revenue should be recognized on the new home construction until it was completed and available for occupancy. John and Karen agreed that there were four possible alternative approaches to measuring the company's revenue: