Question
On December 31, Year 1, a contract was signed between Bison Corp with the Hilltop County to build a bridge over the New River. They
On December 31, Year 1, a contract was signed between Bison Corp with the Hilltop County to build a bridge over the New River. They anticipate that the construction will take three years.
The details of the contract related to the project are follows:
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:
Year 2 | $ 60 million |
Year 3 | $360 million |
Year 4 | $180 million |
Bison Corp. uses the cost-to-cost method to recognize revenue. Which of the following represent the revenue recognized in Year 2, Year 3, and Year 4?
Group of answer choices
$225 million, $300 million, $2550 million
$60 million, $240 million, $120 million
$33 million, $198 million, $99 million
$78 million, $468 million, $234 million
None of the above
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