Camelia Company is a large commercial real estate contractor that reports its income by using the percentage of completion method. In $2023,$ the company entered into a contract to construct a building for $$900,000.$ Camelia estimated that the cost of constructing the building would be $$600,000.$ In $2023,$ the company incurred $$150,000$ in costs under the contract. In $2024,$ the company incurred an additional $$500,000$ in costs to complete the contract.

a$.$ Camelia is not required to report any income from the contract until $2024$ when the contract is completed.

b$.$ Camelia should amend its $2023$ tax return to decrease the profit on the contract for that year.

c$.$ Camelia must recognize $$75,000$ of income in $2023.$

d$.$ Camelia must report $$300,000$ of income in $2023.$