2 Exercise 6-20 (Algo) Long-term contract; revenue recognition over time vs. upon project completion [LO6-9] 2 ponts On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C, for $270 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows($ in millions): 8 02230 sed 2021 2022 2023 $50 $100 960 150 90 Estimated costs to complete as of December 31 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2021 2022 and 2023 income statements related to this contract ossuming Sanderson recognizes revenue over time according to percentage of completion 2. Compute the revenue and gross profit wil Sanderson report in its 2021 2022 and 2023 income statements related to this contract assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of 2022 are $100 million instead of $90 million Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion Hindi Print 2 Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 Income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amoun should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.) Show less oints Percentages of completion Choose numerator Choose denominator % complete to date 02:36:13 0 Skipped 0 2021 2022 2023 0 2021 Recognized in prior years eBook To date Recognized in 2021 0 $ $ 0 Construction revenue Construction expense Gross profit (los) $ 0 Hint 2022 Recognized in prior years Print To date Recognized in 2022 $ $ $ 0 0 Construction revenue Construction expenso Gross profit (los) References 0 2023 Recognized in prior years To date Recognized in 2023 $ 0 Construction revenue Construction expense Gross profit (los) $ $ 0 0 Required 2 > 2 2 points Required: 1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income stateme assuming Sanderson recognizes revenue over time according to percentage of completion 2. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income stateme assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of 2022 are $100 million instead of $90 million. Com revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over tin percentage of completion. 02:36:01 Skipped Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Hint Print Compute the revenue and gross profit will Sanderson report in its 2021, 1022, and 2023 Income statements relate contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. amounts should be indicated with a minus sign.) Revenue Gross Profit (Loss) Year recognized recognized 2021 million million 2022 million million million million References 2023 2 3. Suppose the estimated costs to complete at the end of 2022 are $100 million instead of $90 million. Compute the amo revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according percentage of completion. 2 points Complete this question by entering your answers in the tabs below. 02:35:47 Required 1 Required 2 Required 3 Skipped Suppose the estimated costs to complete at the end of 2022 are $100 million instead of $90 million. Compute the amount of res and gross profit or loss to be recognized in 2022 using the percentage of completion method. (Enter your answers in millions. U percentages as calculated and rounded in the table below to arrive at your final answer) eBook Percentages of completion Choose numerator Choose denominator % complete to date 2022 0 2022 Recognized in prior Years Print To date 0 Recognized in 2022 $ $ $ Construction revenue Construction expense Gross profit (los) o 0 References