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On December 31 of the current year, State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a
On December 31 of the current year, 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 $1,560 million Estimated construction costs $1,200 million Estimated total profit $360 million During the three-year construction period, State Construction incurred costs as follows: Year 1 $120 million Year 2 $720 million Year 3 $360 million State Construction uses the cost-to-cost method to recognize revenue. Which of the following represent the revenue recognized in Year 1, Year 2, and Year 3? Select one: O a. None of these are correct. O b. $156 million, $780 million, $624 million O c. $60 million, $1,000 million, $500 million O d. $0 million, $0 million, $1,560 million O e. $156 million, $936 million, $468 million
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