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During 2008, Tidal Wave Company began construction on a project scheduled for completion in 2011. At December 31, 2009, an overall loss was anticipated at contract completion. What would be the effect of the project on 2009 operating income under the percentage-of-completion method and the completed contract method?
Percentage of completion/Completed contract
a. No effect/No effect
b. No effect/Decrease
c. Decrease/No effect
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