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Inexperienced construction company Ayayai Corp, signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2,300,000. The work
Inexperienced construction company Ayayai Corp, signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2,300,000. The work began inearly 2020 and Ayayai incurred costs of $1,035,000. At December 31, 2020, the estimated future costs to complete the project totalled $1,035,000. During 2021. Ayayai ran into trouble with weather conditions and incurred the expected costs of $1,035,000 and estimated that it would need to spend an additional $340,000 to complete the project. During 2022, Ayayai reluctantly completed the project, incurring further costs of $355,000. Calculate the amount of gross profit or loss that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45). Round percent complete to 2 decimal places, e.g. 15.25.) December 31, 2020 Gross profit/(loss) $ December 31, 2021 December 31, 2022 $
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