Question
On December 31, 2012, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack.
On December 31, 2012, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
Contract price | $520 million |
Estimated construction costs | $300 million |
Estimated total profit | $220 million |
During the three-year construction period, Tri-State incurred costs as follows:
2013 | $ 30 million |
2014 | $180 million |
2015 | $ 90 million |
Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the revenue recognized in 2013, 2014, and 2015?
A. | $52 million, $312 million, $156 million | |
B. | None of the above | |
C. | $12 million, $72 million, $36 million | |
D. | $140 million, $140 million, $140 million | |
E. | $30 million, $180 million, $90 million |
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