Dear professor,

Please help to solve this problem about the revenue recognition.

Best regards,

On December 31, Year 1 , SIS Steel Construction, signs a contract with HBC to constructa new building. SIS Steel anticipates the construction will take 3 years from the end of year 1. The com pa ny's accountants provide the following contract details relating to the project: Contract price $624 million Estimated construction costs $480 million Estimated total profit $144 million During the first two years of construction, SIS Construction incurred costs as folllows: Jan-Dec Year 2 $48 million Jan-Dec Year 3 $288 million SIS Steel Construction uses the cost to cost method to recognize revenue. Compute revenue to be recognized and the estimated profit for : Year 2: Revenue 5 million ; and Estimated Profits million Year 3: Revenue 5 million ; and Estimated Profits million