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A company is constructing a bridge at a fixed price of $15 million over three years

Accounting

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A company is constructing a bridge at a fixed price of $15 million over three years. The customer remains in control of the bridge throughout the contract. The expected costs and billings are provided below.

Year 1 2 3

Expected Cost 4,000,000 4,500,000 3,500,000

Billings 5,000,000 5,000,000 5,000,000

Required

Assume the percentage of completion CAN be measured reliably.

a.If actual costs coincide with expectations:Calculate the amount of revenue that the company should company recognize in each year.

Use an excel sheet to answer the question