Cost estimates at the end of the second year indicate a loss will result on completion of the entire contract. Which of the following statement is correct?

a. UNder the completed-contract method, the loss is not recognized until the year the construction is completed

b. Under the percentage-of-completion method, the gross profit recognized in the first year must not be change

c. Under the completed-contract method, when the billings exceed the accumulated costs, the amount of the estimated loss is reported as a current liability

d. Under the completed-contract method, when the Construction in Process balance exceedsbillings, the estimated loss is added to the accumulated costs