Computing Revenue and Gross Profit on Long$-$term Construction Contract

one inefficiencies.

a$.$ Calculate $(1)$ recognized revenue, $(2)$ the gross profit, and $(3)$ adjusted contract margin to be recorded in the second year of the contract.

b$.$ Calculate $(1)$ cumulative recognized revenue, $(2)$ cumulative gross profit, and $(3)$ cumulative adjusted contract margin at the end of the second year of the contract.