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Question: Rachel, Inc. (Rachel) has a $500,000 airport construction project contract. The estimated total costs are $400,000. In the first year, incurred costs are $200,000. What is Rachel's change in retained earnings at the end of the first fiscal year, if it uses the following revenue recognition methods?
Percentage-of-completion Completed contract
$100,000 $50,000
$50,000 $0
$50,000 $50,000
$0 $0
Production Machinery Equipment and Fixtures
The Butterfly Corporation had the following information that pertained to its March budget.
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