Pereentage-of-completion and completed contract methods of income recognition. The Shannon Construction Company agreed to build a warehouse for S6.000.000. Expected and actual costs to construct the warehouse were as follows: Year 1, SI. 200.000: Year 2. $3,000,000;

and Year 3. S600.000. The firm completed the warehouse in Year 3.

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