On January 1, 2017, assume that Turner Construction Company agreed to construct an observatory for Dartmouth College for $120 million. Dartmouth College must pay $60 million upon signing and $30 million in 2018 and 2019. Expected construction costs are $10 million for 2017, $60 million for 2018, and $30 million for 2019.

REQUIRED
a. Indicate the amount and nature of income (revenue and expense) that Turner would recognize during 2017, 2018, and 2019 if it uses the completed-contract method. Ignore income taxes.
b. Repeat Requirement a using the percentage-of-completion method.
c. Indicate the balance in the Construction in Process account on December 31, 2017, 2018, and 2019 (just prior to completion of the contract), under the completed-contract and the percentage-of-completion methods. Justify Deere's timing of revenue recognition for its equipment sales. Consider why recognition of revenue earlier or later than the time of shipment to dealers would not be more appropriate.