Crane Construction Company began operations on January 1, 2020. During the year, Crane entered into a non-cancellable contract with Blue Spruce Corp. to construct a manufacturing facility. At that time, Crane estimated that it would take five years to complete the facility at a total cost of $4,499,000. The total contract price for construction of the facility is $6,000,000. During the year, Crane incurred $1,120,980 in construction costs related to the project. The estimated cost to complete the contract is $4,217,020. Blue Spruce Corp. was billed and paid 24% of the contract price. The billings are non-refundable.

Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as contract assets or liabilities at December 31, 2020, under the completed-contract method.

Gross profit to be recognized for the year ended December 31, 2020 ?

Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as contract assets or liabilities at December 31, 2020, under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Crane Construction Company Computation of Gross Profit and Contract Liability choose the accounting period Quarter Ended December 31, 2020Month Ended December 31, 2020Year Ended December 31, 2020
select an item Estimated profitContract pricePartial billings on contractGross profitCosts to dateEstimated costs to completeRevenue recognizedContract liabilityPercentage of completion				$enter a dollar amount
select an item Costs to datePartial billings on contractContract liabilityContract pricePercentage of completionGross profitEstimated profitEstimated costs to completeRevenue recognized		$enter a dollar amount
select an item Revenue recognizedPercentage of completionContract priceCosts to datePartial billings on contractGross profitContract liabilityEstimated costs to completeEstimated profit		enter a dollar amount
				enter a subtotal of the two previous amounts
select a summarizing line for the first part Gross profitContract priceEstimated costs to completePercentage of completionContract liabilityPartial billings on contractRevenue recognizedEstimated profitCosts to date				enter a total amount for the first part
select an item Estimated profitRevenue recognizedPercentage of completionEstimated costs to completeContract priceContract liabilityPartial billings on contractGross profitCosts to date				enter percentages	%
select a closing name for section one Partial billings on contractCosts to dateRevenue recognizedEstimated profitEstimated costs to completeContract pricePercentage of completionContract liabilityGross profit				enter a total amount for section one
select an item Estimated costs to completeRevenue recognizedContract liabilityPercentage of completionEstimated profitPartial billings on contractGross profitCosts to dateContract price				$enter a dollar amount
select an item Costs to dateContract priceGross profitPartial billings on contractRevenue recognizedEstimated costs to completePercentage of completionContract liabilityEstimated profit				enter a dollar amount
				$enter a total amount for section two