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Curtiss Construction Company, Inc., entered into a fixed price contract with Axelrod Associates on July 1, 2021, to construct a four-story office building. At that

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Curtiss Construction Company, Inc., entered into a fixed price contract with Axelrod Associates on July 1, 2021, to construct a four-story office building. At that time. Curtis estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,540,000. The building was completed on December 31, 2023. 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: Percentage of completion Costs incurred to dete Estimated costs to completo Billings to Axelrod, to date Al 12-31-2021 10% $368,000 3,312,000 729.000 Al 12-31-2022 60% $2,898,000 1,932,000 2,350,000 Al 12-31-2023 100% $4,889,000 0 4,540,000 Required: 1. Computo gross profit or loss to be recognized as a result of this contract for each of the three years, Curtiss concludes that the 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 2021 and 2022 as either cost in excess of billings or bilings in excess of costs Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 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 "0" wherever required. Loss amounts should be indicated with a minus sign.) Show less Req1 Reg 2 Year Gross Pront (Loss) Recognized Gross Profit (L03) Recognized Upon Completion ("Over Time 2021 2022 2023 Total project profit (s) $ 0$ Reg 1 and Reg>

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