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Curtiss Construction Company, Inc., entered into a fixed price contract with Axelrod Associates on July 1, 2018, to construct a four story office building. At

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Curtiss Construction Company, Inc., entered into a fixed price contract with Axelrod Associates on July 1, 2018, to construct a four story office building. At that time. Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,180,000. Curtis concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: 12:23 2018 At 1231-2019 At 12-31-2020 Percentage of completion 10% 60% 100% Costs incurred to date $362,000 $2,646,000 $4,463,000 Estimated costs to complete 3,258,000 1,764,000 Billings to Axelrod, to date 723,000 2,230,000 4,180,000 Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 as elther cost in excess of bilings or billings in excess of costs. Complete this question by entering your answers in the tabs below. Regland 2 Reg 3 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years, (leave no cells blank - be certain to enter "o" wherever required. Loss amounts should be indicated with a minus sign) Show less Year Req1 Gross Profit (Lossy Recognized Upon Completion Reg 2 Gros Pront Loss) Recognized (Over Time" 2010 2019 2020 Total project profit (1056) Reg 3 > Assuming Curtis recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 asether cost in excess of bilings or billings in excess of costs 2010 2019 Balance Sheet Partial Current Current

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