Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and

$2026$ income statements related to this contract, assuming this project does not qualify for

revenue recognition over time.Problem $16$

On March $10,2025,$ Pinnacle Builders entered into a long$-$term construction contract to construct a sports

arena in Houston, TX$,$ for $$250$ million. The expected completion date is August $1,2027,$ in time for the

$2027$ sports season. Costs incurred and estimated costs to complete at year$-$end for the life of the contract

are as follows $($ $ in millions$)$:

Estimated costs to complete as of December $31$$$150$ million $$80$ million $$

Required:

Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and

$2026$ income statements related to this contract, assuming Sanderson recognizes revenue over

time according to percentage of completion.