$-Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $3,000,000. The costs incurred by Karr and the payments from the state over the three year period are as follows: \begin{array}{|l|c|c|c|r|} \hline & \mathbf{2 0 1 7} & \mathbf{2 0 1 8} & \mathbf{2 0 1 9} & \text { Total } \\ \hline \begin{array}{l} \text { Costs incurred by } \\ \text { Karr } \end{array} & \$ 600,000 & \$ 800,000 & \$ 200,000 & \$ 1,600,000 \\ \hline \begin{array}{l} \text { Payments from } \\ \text { Mississippi } \end{array} & \$ 1,200,000 & \$ 800,000 & \$ 1,000,000 & \$ 3,000,000 \\ \hline \end{array} If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2019? A)$1,200,000 B)$800,000 C)$600,000 D)$175,000$
-Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $3,000,000. The costs incurred by Karr and the payments from the state over the three year period are as follows:

\begin{array}{|l|c|c|c|r|}\hline & \mathbf{2 0 1 7} & \mathbf{2 0 1 8} & \mathbf{2 0 1 9} & \text { Total } \\\hline \begin{array}{l}\text { Costs incurred by } \\\text { Karr }\end{array} & \$ 600,000 & \$ 800,000 & \$ 200,000 & \$ 1,600,000 \\\hline \begin{array}{l}\text { Payments from } \\\text { Mississippi }\end{array} & \$ 1,200,000 & \$ 800,000 & \$ 1,000,000 & \$ 3,000,000 \\\hline\end{array}

If revenue is recognized in proportion to the costs incurred by Karr, how much net income is reported in 2019?
A)$1,200,000
B)$800,000
C)$600,000
D)$175,000

The Fiscal Period Assumption States That the Operating Life of an Economic

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