Revenue Recognition at a Point in Time versus Revenue Recognition Over Time.

The market company won a contract to build a shopping center at a price of $300 million. The following schedule details the estimated and actual costs of construction and the actual cash collections under the contract:

	Estimated (Actual) Costs of Construction	Cash Collection from Customer
Year 1	$40,000,000	$60,000,000
Year 2	60,000,000	75,000,000
Year 3	70,000,000	75,000,000
Year 4	30,000,000	90,000,000
	$200,000,000	$300,000,000

Required

an income statement for the Market Company for each year assuming that the company recognizes revenue at a point in time.

an income statement for the Market Company for each year assuming that the company recognizes revenue over time.

Which set of income statements best reflects the actual performance of the Market Company? Why?