Preparing Financial Statement Presentation for Long$-$Term Contracts

Watson Construction Company contracted to build a plant for $$750,000.$ Construction started in January of Year $1$ and was completed in November of Year $2.$ Watson uses the cost$-$to$-$cost method to measure the completion of its performance obligations. Data relating to the contract follow.

$\backslash$table$[[$As of December $31,$Year $1,$Year $2],[$Costs incurred,$$435,000,$$$180,000$