Answer:
construction in progress 400,000
cost of construction 600,000
revenue from long-term contracts 1,000,000
Explanation:
To derive revenue for this year :we say Total revenue $3,000,000- Revenue previously recognized $2,000,000 =
Revenue to recognize this year $1,000,000.
Cost recognized for the year= $600,000(as opposed to $12000000 in costs last year)
Gross profit recognized for this year = $1,000,000 - $600,000 = $400,000
