Supplier Corp. enters into a government contract during the year to provide computer equipment for $$3,200,000.$ The contract consists of a single performance obligation to provide specified equipment in three years. Total costs estimated by Supplier Corp. for the contract are $$2,240,000.$ The equipment is highly specialized and has no alternative uses. As negotiated in the contract, any costs incurred by Supplier Corp. plus a specified profit margin will be paid to Supplier Corp. in the event of a contract cancellation. Actual costs incurred during the first year of the contract were $$1,024,000$ including unexpected cost overruns of $$128,000$ due to labor inefficiencies.

Assume that at the end of the second year of the contract, the estimate of total costs has increased to $$2,400,000$ million due to an increase in cost of materials. Actual costs incurred to date are $$1,800,000,$ excluding year one inefficiencies.

a$.$ Calculate $(1)$ recognized revenue, $(2)$ the gross profit, and $(3)$ adjusted contract margin to be recorded in the second year of the contract.

$\backslash$table$[[1,$Recognized revenue,$$,0],[2,$Gross profit,$$,0],[3,$Adjusted contract margin,$$,0]]$

b$.$ Calculate $(1)$ cumulative recognized revenue, $(2)$ cumulative gross profit, and $(3)$ cumulative adjusted contract margin at the end of the second year of the contract.

$\backslash$table$[[1,$Cumulative recognized revenue,$$,0],[2,$Cumulative gross profit,$$,0],[3,$Cumulative adjusted contract margin,$$,0]]$