QUESTION 127 Amortization of contract cost assets –amortization method Construction Co enters into a construction contract to build an oil refinery. Construction Co concludes that its performance creates an asset that the customer controls and that control is transferred over time. Construction Co also concludes that “cost-to-cost” is a reasonable method for measuring its progress toward satisfying its performance obligation. Construction Co pays commissions totaling $ 100,000 to its sales agent for securing the oil refinery contract. Construction Co concludes that the commission is an incremental cost of obtaining the contract and recognizes an asset. As of the end of the first year, Construction Co estimates its performance is 50% complete and recognizes 50% of the transaction price as revenue. How much of the contract asset should be amortized as of the end of the first year?