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Blossom Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.3 million. Construction began in 2019 and
Blossom Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.3 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract:
| 2019 | 2020 | 2021 | ||||
| Costs incurred during the year | $623,000 | $806,000 | $675,900 | |||
| Estimated costs to complete | 1,487,000 | 671,000 | 0 |
Calculate the gross profit to be recognized each year using the completed-contract method.
| 2019 | 2020 | 2021 | ||||
| Revenue | $ | $ | $ | |||
| Expenses | ||||||
| Gross Profit | $ | $ | $ |
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