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Computing Revenues under Long-Term Contracts Camden Corporations agreed to build a warehouse for a client at an agreed contract price of $720,000. Expected (and actual) costs for the warehouse follow: 2016, $162,000; 2017, $270,000; and 2018, $108,000. The company completed the warehouse in 2018. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method. Cost-to-Cost Method % of total Costs expected Revenue Year incurred costs recognized Income 2016 $ 405,000 30 % $ 540,000 $ 135,000 2017 675,000 50 % 900,000 225,000 2018 270,000 20% 360,000 90,000 Total $ 1,350,000 $ 1,800,000 $ 450,000