(Contract Costs, Collectibility) Refer to the information in E18-31. Instructions (a) Does the accounting for capitalized costs change if the contract is for 1 year rather than 3 years? Explain. (b) Dans Demolition is a startup company; as a result, there is more than insignificant uncertainty about Dans ability to make the 6-month payments on time. Does this uncertainty affect the amount of revenue to be recognized under the contract? Explain.
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