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Question - On January 1, Year 1, Crawford Construction Company enters into a contract with a customer to build an office complex for a fixed price of $36 million. Estimated costs to complete the project are $24 million. At the end of Year 1, costs incurred to date amount to $18 million. Using the cost-to-cost method, how much revenue should be recognized in Year 1?
1. $24 million
2. $27 million
3. $36 million
4. $0
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