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On December 31, 2019, Mass Construction Inc. signs a contract with the state of Massachusetts Department...

On December 31, 2019, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:

Contract price

$520 million

Estimated construction costs

$300 million

Estimated total profit

$220 million


During the three-year construction period, Tri-State incurred costs as follows:

2020

$ 60 million

2021

$150 million

2022

$ 90 million


Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the profits recognized in 2020, 2021, and 2022?

A.

$44 million, $110 million, $66 million
B.

$52 million, $312 million, $156 million
C.

None of the above
D.

$104 million, $260 million, $156 million
E.

$104 million, $110 million, $66 million
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