Use the following information for the next three questions:

In 20x1, Chili Peppers Co. started work on three contracts. Information of the contracts is shown below:

Contract	Transaction price	Costs incurred	Estimated costs to complete
Contract 1	500,000	375,000	-
Contract 2	700,000	100,000	400,000
Contract 3	250,000	100,000	100,000

1. The performance obligations of Chili Peppers Co. in all of the contracts are satisfied over time. Chili Peppers Co. uses the cost-to-cost method to measure its progress in the contracts. How much is the total revenue recognized from the contracts 20x1?

1. 865,000
2. 765,000
3. 385,000
4. 265,000

2. The performance obligations of Chili Peppers Co. in all of the contracts are satisfied over time. However, the outcome of the performance obligations in the contracts cannot be measured reliably but the costs incurred are recoverable. How much is the total revenue recognized from the contracts in 20x2?

1. 700,000
2. 575,000
3. 500,000
4. 0

3. The performance obligations of Chili Peppers Co. in all of the contracts are satisfied at a point in time (i.e., upon completion). How much is the total revenue recognized from the contracts in 20x2?

1. 700,000
2. 575,000
3. 500,000
4. 0