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1.Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period

2020 $___________

2021 $____________

2022 $_____________

2. Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period

2020 $___________

2021 $___________

2022 $___________

Sunland Construction Company has entered into a non-cancellable contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $625,000 and will take three years to construct. The complex will be billed to the purchasing company at $930,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $281,250 $468,750 $635,000 Estimated costs to complete 343,750 156,250 0 Progress billings to date (non-refundable) 281,250 575,000 930,000 Cash collected to date 251,250 525,000 930,000