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On December 31, 2017, State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the

On December 31, 2017, 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 company's accountants provide the following contract details relating to the project:

Contract price

$780 million

Estimated construction costs

$600 million

Estimated total profit

$180 million

During the three-year construction period, State Construction incurred costs as follows:

2018

$ 60 million

2019

$360 million

2020

$180 million

State Construction uses the cost-to-cost method to recognize revenue. Which of the following represent the revenue recognized in 2018, 2019, and 2020?

Select one:

A. $225 million, $300 million, $255 million

B. $60 million, $240 million, $120 million

C. $33 million, $198 million, $99 million

D. $78 million, $468 million, $234 million

E. None of the above

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