Rondo Construction,a Calendar-Year Taxpayer,starts a New Long-Term Construction Project in December

Rondo Construction,a calendar-year taxpayer,starts a new long-term construction project in December that is expected to last about 18 months.The project is a mall.Because of some contingencies,it is difficult to estimate total costs this early in the project.Rondo can elect to defer income recognition under the modified percentage of completion method if costs completed by year-end are less than

A) 50% of the total estimated cost.
B) 20% of the total estimated cost.
C) 5% of the total estimated cost.
D) 10% of the total estimated cost.