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Problem 1-18 (AICPA Adapted) Dunne Company sells equipment service contracts that cover a two-year period. The sale price of each contract in P600. The past experience is that of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. The entity sold 1,000 contracts evenly throughout 2020. 1. What is the contract revenue for 2020? a. 120,000 b. 240,000 c. 300,000 d. 150,000 2. What amount should be reported as deferered service revenue on December 31, 2020? a. 540,000 b. 480,000 c. 360,000 d. 300,000 3. What is the contract revenue for 2021? a. 180,000 b. 360,000 c. 300,000 d. 120,000 What is the contract revenue for 2022? a. 240,000 b. 360,000 C. 180,000