Using the input method, how much revenue would be recognized in Year 1 and what journal entry would be made to record that revenue? What would be the gross profit for Year 1?

On January 1, Year 1, a contractor agrees to build on the customers land a bridge that is expected to be completed at the end of Year 3. The bridge is a single performance obligation to be satisfied over time. The contractor determines that the progress toward completion of the bridge is reasonably measurable using the input method based on costs incurred. The contract price is $4,000,000, and initial expected total costs of the project are $2,400,000.

	Year 1	Year 2	Year 3
Costs incurred during each year	$ 600,000	$1,200,000	$1,100,000
Costs expected in the future	1,800,000	1,200,000

Using the input method, how much revenue would be recognized in Year 2 and what journal entry would be made to record that revenue? What would be the gross profit for Year 2?

On January 1, Year 1, a contractor agrees to build on the customers land a bridge that is expected to be completed at the end of Year 3. The bridge is a single performance obligation to be satisfied over time. The contractor determines that the progress toward completion of the bridge is reasonably measurable using the input method based on costs incurred. The contract price is $4,000,000, and initial expected total costs of the project are $2,400,000.

	Year 1	Year 2	Year 3
Costs incurred during each year	$ 600,000	$1,200,000	$1,100,000
Costs expected in the future	1,800,000	1,200,000

Using the input method, how much revenue would be recognized in Year 3 and what journal entry would be made to record that revenue? What would be the gross profit for Year 3?

On January 1, Year 1, a contractor agrees to build on the customers land a bridge that is expected to be completed at the end of Year 3. The bridge is a single performance obligation to be satisfied over time. The contractor determines that the progress toward completion of the bridge is reasonably measurable using the input method based on costs incurred. The contract price is $4,000,000, and initial expected total costs of the project are $2,400,000.

	Year 1	Year 2	Year 3
Costs incurred during each year	$ 600,000	$1,200,000	$1,100,000
Costs expected in the future	1,800,000	1,200,000

An entity may not be able to estimate the degree of completion of a project at the end of the first year, perhaps because this is the first time such a project has been undertaken by the firm. In that case, how much revenue would the firm recognize in that year if significant costs have been incurred in the construction process?v