Percentages-of-completion and completed contract methods of income recognition. The Shannon Construction Company agreed to build a warehouse for $6,000,000. Expected and actual costs to construct the warehouse were as follows: 2007, $1,200,000; 2008, $3,000,000; and 2009, $600,000. The firm completed the warehouse in 2009. Compute revenue, expense, and income before income taxes for 2007, 2008, and 2009 using the percentage-of-completion method and the completed contract method.