Old Fogey Inc entered into a long-term construction contract to build a Retirement Home exclusively for former HU faculty who are slightly more effective on the golf course (which isnt too much) than the classroom.

Old Fogey Inc elects to apply the percent of completion method to all long-term contracts.

The contract price is set at $5,800,000 and additional information is as shown:

2020 2021 2022

Cost spent to date $ 840,000 $3,080,000 $4,300,000

Additional Estimated costs to complete 3,360,000 1,320,000 0

Progress Billings $900,000 $3,400,000 $1,100,000

Cash collected 750,000 2,750,000 1,900,000

REQUIRED: Show your work

1. Determine the amount of revenue and profit that will be recognized in 2020, 2021 and 2022 respectively.