1 Curtiss Construction Company, Incorporated, entered into a fixed-price contract with Axelrod Associates on July 1, 2024, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. The building was completed on December 31, 2026. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: eBook Print Percentage of completion Costs incurred to date Estimated costs to complete Billings to Axelrod, to date Required: References At 12-31-2024 At 12-31-2025 At 12-31-2026 10% 608 100% $ 350,000 3,150,000 720,000 $ 2,500,000 1,700,000 2,170,000 $ 4,250,000 4,000,000 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2024 and 2025 as either cost in excess of billings or billings in excess of costs. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. Note: Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign. Show less Req 1 Gross Profit (Loss) Recognized ("Upon Completion") Year 2024 $ 2025 2026 Total project profit (loss) $ Req 2 Gross Profit (Loss) Recognized ("Over Time") 0 $ 50,000 0 $ 50,000 Req 1 and 2 Req 3 >