Amount of revenue recognized in a given year for a long-term contract should be equal to:

a. Amount of cash collected in that year

b. Sales price of the contract multiplied by percentage of contract completion where the percentage is computed based on costs spent on the contract in that year compared to total estimated costs of the contract

c. Zero until the last year of the contract when the full contract is completed and delivered

d. Sales price of the contract minus costs spent on the contract in that year