The Maple Construction Company agreed to construct twelve monuments for the city of Elderton. The total contract price was $2.4 million, and total estimated casts were $1,140,000. The construction took place over a four-year period, and the following schedule indicates the monuments completed, costs incurred, and cash collected for each period:

REQUIRED:a. How much revenue should Maple recognize in each of the four periods under the following three assumptions?(1) Revenues arc recognized each year in proportion to the monuments completed.(2) Revenues are recognized each year in proportion to the percentage of costs incurred.(3) Revenues arc recognized each year in proportion to the cash collected each year.b. For each of the three assumptions, match the appropriate amount of cost against the recognized revenue. Determine net income for each period under the three assumptions.c. Compare the total revenue, total cost, and total net income that result (mm each of the three assumptions. Note that although the timing of the recognition differs across the three assumptions, the total amount of income recognized is thesame.

Year Monuments completed Costs incurred Total 12 S380,000 S600,000 5380.000 5900,000 S285.000 S300.000 S 95,000 S600,000 SI,140,000 Cash collected