On January 1, a utility provider contracts with a coal supper to deliver 60,000 tons of coal per year for $2,400,000. The coal supplier uses the percentage-of-completion method for recognizing revenue. The utility provider pays $800,000 on the last day of each quarter. The utility provider requests that 10,000 tons be delivered for each month in January, February, and march. How much revenue should the coal supplier recognize for the first quarter of the year?

• $400,000
• $800,000
• $1,200,000
• $2,400,000

A contractor estimates the total cost of a long-term construction project to be $2,400,000 over a 12-month period beginning on January 1. The contractor will receive a payment of $400,000 on January 31 and then payments of $250,000 on the last day of each month there afterward. The price of the project to the customer is $3,150,000. The contractor uses the cost-to-cost method for revenue recognition and has incurred costs of $1,600,000through May 31. What is the year-to-date revenue recognized for this project?

• $1,400,000
• $1,600,000
• $2,100,000
• $262,500