Juan Corporation Signed a Contract for $975,000 to Construct a Small

Juan Corporation signed a contract for $975,000 to construct a small shopping centre for a large retail conglomerate.Construction is expected to take three years and cost $750,000.
Actual results were: $\begin{array}{lll}\text { Year }&\text { Costs }&\text { Receipts }\\\hline 2012 & \$ 150,000 & \$ 125,000 \\2013 & \$ 375,000 & \$ 375,000 \\2014 & \$ 225,000 & \$ 475,000\end{array}$ Required:
A) Compute the revenue and expenses for each year using the percentage-of-completion method.B) Compute the revenue and expenses for each year using the cost recovery method.
C) Compute the gross profit margin for each year under each of the two methods.
D) Which method of revenue recognition would be more useful to the shareholders of Juan Corporation? Why?