Shen Construction Company had a long-term construction project that lasted three years. The project had a contract price of $150 million, with total estimated costs of $100 million. Shen used the percentage-of-completion method. At the end of construction, the following actual costs had been incurred:
_________________________________2012 2013 2014
Actual cost................................$25 million .........$55 million..............$20 million
Instructions
Calculate the revenue and gross profit that were recognized for each year of the construction contract.