Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, 2023 using the percentage of completion method.

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2021, costs of $2,000,000 were incurred with estimated costs of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent, and cash collected was $2.250.000 In 2022, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2022 billings were $2,750,000, and $2.475,000 cash was collected. The project was completed in 2023 after additional costs of $3,800,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method. % complete to date 2021 2022 2023 Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 2,000,000 - 6,000,000 4,500,000 8,100,000 8,300,000 - 8,300,000 2021 To date Recognized in prior years 33 3333% 555556% 100.0000% Recognized in 2021 Construction revenue Construction expense Gross profit (loss) 2,000,000 666,667 $ S 2,000,000 666,667 2022 To date Recognized in prior years Recognized in 2022 Construction revenue Construction expense Gross profit (loss) 2023 To date Recognized in prior years Recognized in 2023 Construction revenue Construction expense Gross profit (loss)