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 companys 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:

a. $156 million, $780 million, $624 million

b. $0 million, $0 million, $1,560 million

c. $60 million, $1,000 million, $500 million

d. $156 million, $936 million, $468 million

e. None of these are correct.