Johnson Inc. enters into a $300,000 contract for the purchase of standard equipment with Builder Inc. The construction of the equipment is expected to take two years. Johnson will take control of the equipment upon completion. After year-one, Builder Inc. incurred costs of $120,000 and expects remaining costs to be $108,000. Builder Inc. will collect 50% of the contract price upon completion of the equipment. The remaining 50% will be billed evenly over the contract period. Any amounts paid are nonrefundable. Determine the amount of revenue and expenses that Builder Inc. should recognize in the first year of the contract. Select one: Revenue Expenses $75,000 $114,000 b. Revenue Expenses $0 $0 C. Revenue Expenses $75,000 $120,000 d. Revenue Expenses $157,895 $114,000 e. Revenue Expenses $157,895 $120,000 x Johnson Inc. enters into a $300,000 contract for the purchase of standard equipment with Builder Inc. The construction of the equipment is expected to take two years. Johnson will take control of the equipment upon completion. After year-one, Builder Inc. incurred costs of $120,000 and expects remaining costs to be $108,000. Builder Inc. will collect 50% of the contract price upon completion of the equipment. The remaining 50% will be billed evenly over the contract period. Any amounts paid are nonrefundable. Determine the amount of revenue and expenses that Builder Inc. should recognize in the first year of the contract. Select one: Revenue Expenses $75,000 $114,000 b. Revenue Expenses $0 $0 C. Revenue Expenses $75,000 $120,000 d. Revenue Expenses $157,895 $114,000 e. Revenue Expenses $157,895 $120,000 x