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App-Problem7-117DeterminingProfitorLossReportedforLong-TermConstruction:CurrentPeriodLoss-RevenueRecognizedOverTimeversusPointinTimeL011DueploConstructionhasagreedtobuildanadditionforanofficebuildingforacontractpriceof$2,000,000.Theperiodofconstructionisestimatedtobethreeyears.ThecontractissignedonJanuary1ofYear1,andcon-structionbeginsimmediately.ThebuildingiscompletedonDecember31ofYear3.Dataoncostsincurred,andestimatedcoststocompleteovertheperiodofconstructionfollow. Required a. Determine the profit or loss to be reported in Year 1, Year 2, and Year 3 assuming the company recognizes revenue over time. b. Determine the profit or loss to be reported in Year 1, Year 2, and Year 3 assuming the company recognize revenue at a point in time