Computing Revenue and Gross Profit on Long-term Construction Contract Supplier Corp. enters into a government contract in 2020 to provide computer equipment for $1.8 million. The contract consists of a single performance obligation to provide specified equipment in three years. Total costs estimated by Supplier Corp. for the contract are $1.26 million. The equipment is highly specialized and has no alternative uses. As negotiated in the contract, any costs incurred by Supplier Corp. plus a specified profit margin will be paid to Supplier Corp. in the event of a contract cancellation. Actual costs incurred in 2020 were $585,000 including unexpected cost overruns of $72,000 due to labor inefficiencies. a. Would revenue be recognized over time or at a point in time for this contract? Recognize revenue over time b. Calculate (1) recognized revenue, (2) the gross profit, and (3) adjusted contract margin to be recorded in 2020. A Note: Round each of your answers to the nearest dollar. 1. Recognized revenue 2. Gross profit 3. Adjusted contract margin $ A Computing Revenue and Gross Profit on Long-term Construction Contract Supplier Corp. enters into a government contract in 2020 to provide computer equipment for $1.8 million. The contract consists of a single performance obligation to provide specified equipment in three years. Total costs estimated by Supplier Corp. for the contract are $1.26 million. The equipment is highly specialized and has no alternative uses. As negotiated in the contract, any costs incurred by Supplier Corp. plus a specified profit margin will be paid to Supplier Corp. in the event of a contract cancellation. Actual costs incurred in 2020 were $585,000 including unexpected cost overruns of $72,000 due to labor inefficiencies. a. Would revenue be recognized over time or at a point in time for this contract? Recognize revenue over time b. Calculate (1) recognized revenue, (2) the gross profit, and (3) adjusted contract margin to be recorded in 2020. A Note: Round each of your answers to the nearest dollar. 1. Recognized revenue 2. Gross profit 3. Adjusted contract margin $ A