Completed Contract Method versus Percentage-of-Completion Method
The Miller Company won a contract to build a shopping center at a price of $240 million.
The following schedule details the estimated and actual costs of construction and the actual cash collections under the contract:
	Estimated (Actual) Costs		Cash Collections
	of Construction		From Customer
Year 1	$40,000,000		$48,000,000
Year 2	60,000,000		60,000,000
Year 3	70,000,000		60,000,000
Year 4	30,000,000		72,000,000
	$200,000,000		$240,000,000
Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the completed contract method.
	Year 1		Year 2	Year 3	Year 4	Total
Revenue
Construction Cost
Net Income
Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the percentage-of-completion method.
	Year 1		Year 2	Year 3	Year 4	Total
Revenue
Construction Cost
Net Income