The Miller Company won a contract to build a shopping center at a price of $540 million. The following schedule details the estimated and actual costs of construction and the actual cash collections under the contract:

1. Prepare a income statement for the Miller Company for each year assuming that the company recognizes revenue under the completed contract method. Enter all answers as positive numbers. Enter all zeros in your answers.

2.Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the percentage-of-completion method. Enter all answers as positive numbers. Enter all zeros in your answers.

3. Which set of income statements is generally regarded as the most realistic way to portray a company's operating performance when faced with a multiyear contract.

Revenue Recognition at a Point in Time versus Revenue Recognition Over Time The Miller Company won a contract to build a shopping center at a price of $540 million. The following schedule details the estimated and actual costs of construction and the actual cash collections under the contract: Estimated (Actual) Costs Cash Collections of Construction From Customer Year 1 $90,000,000 $108,000,000 Year 2 135,000,000 135,000,000 Year 3 157,500,000 135,000,000 Year 4 67,500,000 162,000,000 $450,000,000 $540,000,000 Required 1. Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the completed contract method. Enter all answers as positive numbers. Enter all zeros in your answers. Year 1 Year 2 Year 3 Year 4 Total $ 0 $ 0 $ 0 $ 0 $ 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 2. Prepare an income statement for the Miller Company for each year assuming that the company recognizes revenue under the percentage-of-completion method. Enter all answers as positive numbers. Enter all zeros in your answers. Year 1 Year 2 Year 3 Year 4 Tota $ 0 $ 0 $ 0 $ 0 $ O 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ O 3. Which set of income statements is generally regarded as the most realistic way to portray a company's operating performance when faced with a multiyear contract