During the year, R Corporation entered into a long-term contract to build a nuclear power plant.The plant will take four years to build.At the close of the current taxable year, the corporation estimated that it had completed 8 percent of the contract.The corporation must use the percentage of completion method and must report 8 percent of the estimated contract price as income this year.

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The Answer of During the year, R Corporation entered into a long-term contract to build a nuclear power plant.The plant will take four years to build.At the close of the current taxable year, the corporation estimated that it had completed 8 percent of the contract.The corporation must use the percentage of completion method and must report 8 percent of the estimated contract price as income this year.

During the Year, R Corporation Entered into a Long-Term Contract