Karr Construction built a levee for the state of Mississippi over a three-year period. The contracted price for the levee was $3,000,000. The costs incurred by Karr and the payments from the state over the three year period are as follows:
If revenue is recognized when payments are received, which of the following present the net income amounts reported in 2017, 2018, and 2019, respectively?
A) $1,200,000; $800,000; $1,000,000
B) $600,000; $0; $800,000
C) $800,000; $800,000; $800,000
D) $600,000; $400,000; $200,000
Correct Answer:
Verified
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