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5 Toital costy Grits firzitit 5 4 ? Fextbool. Meil Blossom Construction Company began operations on January 1 , 2 0 2 3 . During

5
Toital costy
Grits firzitit
5
4?
Fextbool. MeilBlossom Construction Company began operations on January 1,2023. During the year, Blossom entered into a non-
cancellable contract with Wildhorse Corp. to construct a manufacturing facility. At that time, Blossom estimated that it would
take five years to complete the facility at a total cost of $4,498,000. The total contract price for construction of the facility is
$6,045,000. During the year, Blossom incurred $1,184,040 in construction costs related to the project. The estimated cost to
complete the contract is $4,197,960. Wildhorse was billed and paid 25% of the contract price. The billings are non-refundable.
Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31,2023, and the
amount to be shown as contract assets or liabilities at December 31,2023, under each of the following methods.
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