Delmonte Builders is currently working on a three year building project for a client Delmonte recognizes revenues based on the percentage of the work completed by the end of each year The following table shows the project progress over the three year period Year 1 2 3 Total price of the three year project $10,000,000 $10,000,000 $10,000,000 Percentage of the work completed 18 75 100 Cash received from the client $3,500,000 $3,500,000 $3,000,000 REQUIRED How much revenue should Delmonte recognize in Years 2 and 3 Explain

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Question: Delmonte Builders is currently working on a three-year building project for a client. Delmonte recognizes revenues based on the percentage of the work completed by

Delmonte Builders is currently working on a three-year building project for a client. Delmonte recognizes revenues based on the percentage of the work completed by the end of each year. The following table shows the project progress over the three-year period.

Year	1	2	3
Total price of the three-year project	$10,000,000	$10,000,000	$10,000,000
Percentage of the work completed	18%	75%	100%
Cash received from the client	$3,500,000	$3,500,000	$3,000,000

REQUIRED: How much revenue should Delmonte recognize in Years 2 and 3? Explain.

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