The percentage-of-completion method is required for tax purposes for long-term contracts unless an exemption exists for the taxpayer. Which of the following situations does not describe an exemption from using the percentage-of-completion method for a long-term contract? A long-term construction contract for construction of commercial real property. Services performed under a maintenance agreement. A project completed in an 18-month period by a contractor with average annual gross receipts of $8 million for the last three years. A long-term construction contract in which 90 percent of the total contract costs relate to construction of homes.