Wise Guy Company is working on a creative project with the following characteristics: (1) the customer does not receive the benefit as the work performed, (2) the asset is not controlled by the customer, and (3) the asset does have other uses to the seller. About 40% of the $100,000 project is completed in Year 1 and 60% is completed in Year 2. What amount of revenue should be recognized in Year 1 and Year 2, respectively?

Select one:

a. $100,000 in Year 1 and $0 in Year 2.

b. $0 in Year 1 and $100,000 in Year 2.

c. $40,000 in Year 1 and $60,000 in Year 2.