Regal Construction Co$.$ entered into a long$-$term contract to build a facility for $$630,000.$ 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$$365,400$$$151,200$Estimated total costs$522,900*$Billings during the year$340,200289,800$Cash collections during the year$315,000315,000$

$*$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$$$303,282$$$326,718$

b$.$

Year $1$Year $2$$$340,200$$$289,800$

c$.$

Year $1$Year $2$$$0$$$630,000$

d$.$

Year $1$Year $2$$$440,241$$$189,759$