Percentage-of-completion and completed contract methods of income recognition. The Bechtel Construction Company agreed to build a warehouse for \(\$ 4,000,000\). Expected and actual costs to construct the warehouse were as follows: Year 1, \(\$ 800,000\); Year 2, \(\$ 1,920,000\); and Year 3, \(\$ 480,000\). The firm completed the warehouse in Year 3.

Compute revenue, expense, and net income for Year 1, Year 2, and Year 3 using the percentage-of-completion method and the completed contract method.