1. At the beginning of 2020, Broadway Road Construction entered into a contract to build a road for the government. Construction will take four years. The following information as of December 31, 2020 is available for the contract:

Total revenue according to the contract $10,000,000

Total expected cost 8,000,000

Cost incurred during 2020 1,200,000

Under the completed contract method, how much revenue will be reported by Broadway in 2020?

1. None
2. $300,000
3. $1,500,000

2. Which of the following is the most appropriate classification of profit on sale of discontinued operations by a manufacturing firm?

1. Gain reported as a part of continuing operations
2. Revenue considered a part of operating activities
3. Gain reported after continuing operations