$9\mathrm{.}18$ MEASURING INCOME FROM LONG$-$TERM CONTRACTS. 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.