When there is a significant increase in the estimated total contract costs but the increase does not eliminate all profit on the contract, which of the following is correct? A. Under the cost-recovery method of d only t y, the estimated cost increase requires a current penod adjustment of excess gross profit recognized on the project in prior penods B. Under the percentage of completion method only the estimated cost increase requires a curent period adjustment of excess gross profit recognized on the project in prior periods C. No curent period adjustment is required D. Under both the percentage of completion and the cost recovery methods, the estimated cost increase naqures a current period adjustment of excess gross profit recognized on the project in prior periods
