The Company agrees to build a warehouse for a client at the contract price of...

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Accounting

The Company agrees to build a warehouse for a client at the contract price of $900,000. The client will pay the Company $400,000 in 2016 and $250,000 in 2017 and 2018 each. The Company expects to incur total costs of $675,000 on this project. The actual costs for the project are:
2016= $202,500
2017= $337,500
2018= $135,000.
Use the Cost-to-Cost methodology to calculate this contracts Revenues, Expenses, and Gross Income in each of the three years.

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