In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

201820192020

Cost incurred during the year$3,344,000$3,960,000$1,645,600

Estimated costs to complete of year-end5,456,0001,496,0000

Billings during the year2,800,0004,504,000 2,696,000

Cash collections during the year2,600,0004,400,0003,000,000

Westgate Construction uses the completed contract method of accounting for long-term construction contracts.

Required: 4.Calculate the amount of revenue and gross profit (loss)to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

2018 2019 2020

Cost incurred during the year$ 2,480,000$3,840,000$3,280,000

Estimated costs to complete of year-end5,680,0003,180,0000

5.Calculate the amount of revenue and gross profit (loss)to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

2018 2019 2020

Cost incurred during the year $2,480,000 $3,840,000 $4,020,000

Estimated costs to complete of year-end5,680,0004,180,0000