5 - Homework Saved Helps On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions) Costs incurred during the year Estimated costs to complete as of December 31 2018 $ 60 180 2019 2020 $120 $70 70 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion 2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 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 2019 are $140 million instead of $70 million Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. Required 1 Required 2 Required 3 Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amounts 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 15 points = % complete to date Percentages of completion Choose numerator + Choose denominator Actual costs to date 60 120 1801 2018 S 2019 S 2020 66.67% 100.00% 2018 Recognized in prior years To date Recognized in 2018 Construction revenue Construction expense Gross profit loss) 2019 To date Recognized in prior years Recognized in 2019 Cagstruction revenue Construction expense Gross profit oss) 2020 To date Recognized in prior years Recognized in 2020 Construction revenue Construction expense Gross profit doss) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.) Year Gross Profit (Loss) recognized 2018 Revenue recognized million million million million 2019 million 2020 million Required 1 Required 3 > Required 1 Required 2 Required 3 Suppose the estimated costs to complete at the end of 2019 are $140 million instead of $70 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. (Enter your answers in millions. Use percentages as calculated and rounded in the table below to arrive at your final answer.) Percentages of completion Choose numerator - Choose denominator % complete to date 2019 2019 To date Recognized in 2019 Recognized in prior Years $ 60 Construction revenues Construction expense Gross profit (loss) ( Required 2