On December 31 of the current year, State Construction Inc….

On December 31 of the current year, State Construction Inc. (“the company”) signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. The company anticipates the construction will take three years.   The company’s accountants provide the following details relating to the project:  Contract price,  $624 million Estimated constructions costs (in total),  $480 million Estimated total profit,  $144 million During the three-year construction period, State Construction incurred actual construction costs as follows:  Year 1,  $  48 million Year 2,  $288 million Year 3,  $144 million (Actual total costs equaled the estimated total of $480 million.) Assume the contract meets the criteria for revenue recognition over time, and State Construction uses the cost-to-cost method to recognize revenue. Which of the following represents the amount of revenue State should recognize in Year 1, Year 2, and Year 3, respectively?