1.Constructing and Assessing Income Statements Using Cost-to-Cost Method

Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $1,080 million. The contract price of $1,350 million is to be paid as follows: $450 million at the time of signing; $450 million on December 31, 2016; and $450 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $432 million in 2016 and $648 million in 2017.

a. Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.

Enter dollar amounts in millions.

Year

Costs incurred

% of total expected costs

Revenue recognized

Income

2016

%

2017

%

Total

El Exam 1 fall AFS'IO 4. Constructing and Assessing Income Statements Using Cost-to-Cost Method Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NS-TAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $1,080 million. The contract price of $1,350 million is to be paid as follows: $450 million at the time of signing; $450 million on December 31, 2016; and $450 million at completion-in May 201?. General Electric incurred the following costs in constructing the generator: $432 million in 2016 and $648 million in 201?. ' 3. Compute the amount 'of General-Electrics revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method. Enter dollar amounts in millions. ) Please show your calculations