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问题如下：

A company sells a non-refundable, two-year service contract for €420. Based on historical patterns, the company expects to incur 25% of service costs in the first year of the contract and the remainder in the second year. The amount of revenue the company recognizes in the first year is closest to:

选项：

A.105

B.420

C.210

解释：

Service revenues are recognized by reference to the stage of completion of the service contract. Historical patterns provide evidence that 25% of the services performed under the contract are incurred during the contract’s first year. As such, only 25% of the contract revenue would be recognized in the first year: Revenue recognized in first year €105 = 25% × €420.