Answer
1. Take total cost to date over total project cost to get the percentage completed.
2. To determine total income, we would take the total contract cost less cost to date and the estimated cost to completion.
3. To arrive at the income for the second year, we would take the total contract income less income earned in the previous year.
Work Step by Step
It is also important to note that the cost to cost method doesn't take into consideration the time value of money.
