On January 1,2020 ABC enters contracts with the State of Texas to build a new loop around a heavily congested part of San Antonio for $50,000,000. The contract allows ABC to make monthly progress billings as work progresses on the project, which is expected to take 3 years to complete. Following are details on the project. Construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred as of year-end Year-end estimate of costs to complete the job Year-end estimate of total job costs Progress billings during the year Cash collections during the year 2020 $17,000,000 2021 2022 $13,000,000 $12,000,000 $0 $17,000,000 $29,000,000 $17,000,000 $29,000,000 $42,000,000 $18,000,000 $9,000,000 $35,000,000 $38,000,000 $q $42,000,000 $15,300,000 $10,800,000 $23,900,000 $13,770,000 $11,250,000 $24,980,000 1. Determine the appropriate revenue to be recognized on this contract and complete the income statement and balance sheet excerpts from ABC s financial statements across the 3 year period of the contract. Assume that ABC is creating an asset that has no alternative use to ABC and that the customer does not consume the benefit of the roadway as construction work is performed and that the customer does not control the roadway as it is created Enter your answer below in the green boxes. Complete all boxes--enter zero where appropriate. 1. Determine the appropriate revenue to be recognized on this contract and complete the income statement and balance sheet excerpts from ABC s financial statements across the 3 year period of the contract. Assume that ABC is creating an asset that has no alternative use to ABC and that the customer does not consume the benefit of the roadway as construction work is performed and that the customer does not control the roadway as it is created Enter your answer below in the green boxes. Complete all boxes--enter zero where appropriate. Construction revenues Cost of construction Gross profit on construction jobs Current assets: Accounts receivable Costs and profits in excess of billings Current liabilities Billings in excess of costs and profit Income Statement 2020 Balance Sheet (end of year) 2020 2021 2021 2022 2022 2. Redo the analysis assuming that that roadway being constructed by ABC does have alternative use to the seller and that the customer does not consume the benefit of the roadway as construction work is performed and that the customer does not control the roadway as it is created. Enter your answer below in the green boxes. Complete all boxes--enter zero where appropriate. Construction revenues Cost of construction Gross profit on construction jobs Current assets: Accounts receivable Costs and profits in excess of billings Current liabilities Billings in excess of costs and profit Income Statement 2020 Balance Sheet (end of year) 2020 2021 2021 2022 2022