In 2019, Cashmere Construction Company, a small business, enters into a contract to build a beach cottage for Martha and Rob for a total price of $500,000. Cashmere estimates the total cost to complete the cottage to be $400,000. In 2019, Cashmere incurred $300,000 of costs on the contract, and in 2020 the contract was completed at a total cost of $425,000. Cashmere is not required to recognize any income from the contract until 2020.

true or false