Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion
method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At the end of 2022, estimated total costs were $18,000,000. Seasons Construction completes the remaining 25% of the building construction on December 31, 2023, as scheduled. At that time the total costs of construction are $18,750,000. What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Seasons will recognize for the year ended December 31, 2023? Revenue Expenses $18,600,000 $18,750,000 $ 4,650,000 $ 4,687,500 $ 4,650,000 $ 5,250,000 $ 4,687,500 $ 4,687,500
