In 20x1, Espresso Co. started work on a long-term construction Espresso Co. accumulates costs and recognized profits using the "Construction in progress account. contract. Information on the contract is as follows:

20x1

20x2

Accounts receivable, ending balances

Costs incurred each year

250,000

750,000

262,500

480,000

Construction in progress, ending balances Progress billings, cumulative balances

305,000

910,000

250,000

1,050,000

Espresso bills the customer based on the project's stage of completion, which is computed using the costs incurred. How much are the profit, revenue and total collections in 20x2, respectively?

a. 125,000; 605,000; 300,000

b. 149,000; 640,000; 326,000

c. 50,000; 242,000; 120,000

d. 150,000; 620,000; 300,000