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Curtiss Construction Company, Inc entered Into a fixed-price contract with Axelrod Assoclates on July 1, 2018, to construct a four-story office building. At that time,

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Curtiss Construction Company, Inc entered Into a fixed-price contract with Axelrod Assoclates on July 1, 2018, to construct a four-story office building. At that time, Curtiss estlmated that It would take between two and three years to complete the project. The total contract price for construction of the bulding is $4,180,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The bulding was completed on December 31, 2020. Estlmated percentage of completion, accumulated contract costs Incurred, estimated costs to complete the contract, and accumulated bilngs to Axelrod under the contract were as follows Percentage of conpletion Costs incurred to date Estimated costs to complete Billings to Axelrod, to date At 12-31-2818 At 12-31-2819 At 12-31-2828 $4,463 , eee 4,188,808 10% $ 362,eee 3,258,e88 723 , $2,646,eee 1,764,880 2,238,e08 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 ether cost In excess of billings or billings In excess of costs. Complete this question by entering your answers in the tabs below. Req 1and 2 Req 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 0 wherever required. Loss amounts should be indicated with a minus sign.) Show less Year Gross Profit (Loss) Recognized Gross Profit (Loss) Recognized 2018 2019 Total project profit loss) 0 S Req land?2 Req3 Req 1and 2 Req 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 either cost in excess of billings or billings in excess of costs Balance Sheet (Partial) 2018 2019 Current assets Current liabilities

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