KL Construction Limited (KL) has been contracted to build a new pavilion.The contract price is $120,000.At balance date the pavilion is 50 per cent complete.In terms of the contract, KL has received two progress payments totaling $45,000 by 31 March 2015, which is its balance date. In terms of the contract, on 1 April 2015 KL also submitted the next progress payment invoice for $13,000, and it received this cash on 10 April 2015.

Which of the following statements is correct in terms of the income from the contract?

Select one:

a.If KL reported on an accrual basis: $58,000.

b.If KL reported on an accrual basis: $65,000

c.If KL reported on a cash basis: $55,000

d.If KL reported on an accrual basis: $60,000