CALCULATE THE AMOUNT OF REVENUE AND GROSS PROFIT (LOSS) TO BE RECOGNIZED IN EACH OF THE THREE YEARS

Problem 5-10 Long-term contract; revenue recognition over time [LO5-8, 5-9] The following information applies to the questions displayed below] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2019 $2,044,000 $2,628,000 $2,890,800 2018 2020 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 5,256,000 2,628,000 2,170,000 2,502,0005,328,000 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion