Automia Construction Company contracted to build an apartment complex for a price of $10,000,000. Construction began in year 1 and was completed in year 3. The following are two situations involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 Required: Costs Incurred During the Year Year 1 3,000 1,000 Year 2 4,200 6,000 Year 3 1,800 3,600 Est. Costs to Complete (As of the End of the Year) Year 1 6,000 9,200 Year 2 1,800 3,400 Year 3 -0- -0- Determine the Gross Profit (Loss) Recognized for the two situations when revenue is recognized over time and when revenue is recognized upon completion.

Automia Construction Company contracted to build an apartment complex for a price of $10,000,000. Construction began in year 1 and was completed in year 3 . The following are two situations involving differing costs for the project. All costs are stated in thousands of dollars. Est. Costs to Complete Costs Incurred During the Year (As of the End of the Year) Required: Determine the Gross Profit (Loss) Recognized for the two situations when revenue is recognized over time and when revenue is recognized upon completion