Installment and const recovery methods of income recognition. Raytheon has agreed to construct a high-tech missile detection system for $900 million. Expected and actual costs to construct the detection system were as follows: 2006, $200 million; 2007, $200 million; and 2008, $300 million. Raytheon completed the system in 2008. Compute revenue, expense, and income before income taxes for 2006-2008 using the percentage-of-completion method and the completed contract method.