Effect of revenue recognition methods on bois The Kwai Co has obtained a contract to build a bridge over de Celluloid River. The bridge will take three years to construct and will re quire Kwai cash outflows of $1.0 million, 50.5 million, and 50.5 million in years 1, 2, and 3, respectively. Kwai will receive the $3 million contract price in three equal installments of 51 mil bon As manager of this project you have three revenue recognition choices

(a) Completed contract (b) Percentage of completion (c) Installment basis