4. Cost estimates on a long-term contract may indicate that a loss will result on completion of the entire contract. In this case, the entire expected loss should be
(A) the cost-recovery method defers recognition of the loss to the time when the contract is
(B) deferred and recognized when the contract is completed, regardless of whether the percentage-of-completion or cost-recovery method is employed.
(C) recognized in the current period, and reported as a current liability (estimated liability) under both the percentage-of-completion and the cost-recovery methods. completed.
(D) no action taken until profits exist upon construction completion under both the percentage-of-completion and the cost-recovery methods.