ABC Construction Inc began operations in 2019 and has a year end of December 31 st The company won a contract for $10,000 to construct a building ABC uses the percentage of completion method based on estimated costs The following information is available 2019 2020 2021 Total Costs to date $2,000 $5,000 $7,500 $7,500 Billings during the year 2,500 4,000 3,500 10,000 Collections during the year 2,250 3,700 3,550 9,500 The costs estimated to complete the project calculated at each year end were 2019 2020 2021 Estimated costs to complete $5,000 $2,700 0 Required Show and label all calculations ( Round to two decimal places (XX XX ) and amounts to nearest dollar ) Calculate the revenue, expenses, and gross profit to be recognized on the contract for 2019, 2020, 2021 Label your answers What value will the company report as the Contract Asset Liability (label if asset or liability) at December 31, 2020 Show and label all calculations If instead, ABC was unable to estimate the profit on the contact and chose to use the zero profit method , what would the revenue, expenses, and gross profit to be recognized on the contract for 2019

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ABC Construction Inc. began operations in 2019 and has a year-end of December 31 st . The company won a contract for $10,000 to construct

ABC Construction Inc. began operations in 2019 and has a year-end of December 31^st. The company won a contract for $10,000 to construct a building. ABC uses the percentage-of-completion method based on estimated costs. The following information is available:

	2019	2020	2021	Total
Costs to date	$2,000	$5,000	$7,500	$7,500
Billings during the year	2,500	4,000	3,500	10,000
Collections during the year	2,250	3,700	3,550	9,500

The costs estimated to complete the project calculated at each year end were:

	2019	2020	2021
Estimated costs to complete	$5,000	$2,700	-0-

Required: Show and label all calculations. (Round % to two decimal places (XX.XX%) and amounts to nearest dollar.)

Calculate the revenue, expenses, and gross profit to be recognized on the contract for 2019, 2020, & 2021. Label your answers.

What value will the company report as the Contract Asset/Liability (label if asset or liability) at December 31, 2020? Show and label all calculations.

If instead, ABC was unable to estimate the profit on the contact and chose to use the zero profit method, what would the revenue, expenses, and gross profit to be recognized on the contract for 2019?