Regal Construction Co$.$ entered into a long$-$term contract to build a facility for $$810,000.$ Construction began on January $1,$ Year $1$ and was completed at the end of Year $2.$ Regal uses the cost$-$to$-$cost method to measure the completion of its long$-$term performance obligations when revenue is recognized over time. Data related to the contract is as follows.

Year $1$Year $2$Costs incurred during year$$469,800$$$194,400$Estimated total costs$672,300*$Billings during the year$437,400372,600$Cash collections during the year$405,000405,000$

$*$Project completed at year$-$end; thus all costs are actual.

What amount of revenue will Regal Construction recognize in Year $1$ and Year $2$ related to the long$-$term contract, assuming that revenue is recognized over time?

Select one:

a$.$

Year $1$Year $2$$$566,024$$$243,976$

b$.$

Year $1$Year $2$$$0$$$810,000$

c$.$

Year $1$Year $2$$$437,400$$$372,600$

d$.$

Year $1$Year $2$$$575,028$$$234,972$

e$.$

Year $1$Year $2$$$389,934$$$420,066$