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On December 3 1 , 2 0 1 7 , State Construction Inc. signs a contract with the state of West Virginia Department of Transportation
On December State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. State Construction anticipates the construction will take three years.
The companys accountants provide the following contract details relating to the project:
Contract price
$ million
Estimated construction costs
$ million
Estimated total profit
$ million
During the threeyear construction period, State Construction incurred costs as follows:
$ million
$ million
$ million
$ million
State Construction uses the costtocost method to recognize revenue.
Which of the following represent the revenue recognized in and
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